Analyst Peter Grom of UBS maintained a Hold rating on Conagra Brands, with a price target of $19.00.
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Peter Grom has given his Hold rating due to a combination of factors influencing Conagra Brands’ current market position. The company is set to report its second-quarter earnings soon, and despite its shares underperforming compared to the broader market, the current valuation does not suggest a significant shift in investment thesis. The primary concern lies in whether the company can achieve its projected growth in the latter half of the fiscal year, as recent trends have shown a slowdown.
Additionally, while Conagra has maintained its guidance for the fiscal year, including expectations for organic growth and inflation impact, there is skepticism about the company’s ability to meet these targets. The anticipated second-quarter performance is expected to reflect challenges, particularly in the Grocery & Snacks and Refrigerated & Frozen segments, where sales trends have been declining. Given these uncertainties, the risk and reward appear balanced, justifying the Hold rating.
According to TipRanks, Grom is an analyst with an average return of -4.3% and a 50.49% success rate. Grom covers the Consumer Defensive sector, focusing on stocks such as General Mills, The Hershey Company, and Monster Beverage.