UBS Maintains Hold Rating on Conagra Brands Amidst Growth Challenges and Valuation Concerns

In a report released today, from UBS maintained a Hold rating on Conagra Brands (CAG – Research Report), with a price target of $22.00.

UBS has given its Hold rating due to a combination of factors influencing Conagra Brands’ current and future performance. The firm anticipates that organic growth will continue to underperform the company’s low single-digit growth target over the next few years, although this expectation has already been factored into the stock price. UBS projects a slight downside to consensus earnings per share by fiscal year 2026, but considers the overall risk and reward to be balanced given the stock’s current low valuation and attractive dividend yield.
Furthermore, UBS notes that Conagra’s portfolio is only expected to support minimal growth due to market share challenges, particularly in the frozen food category, which has been affected by supply issues. The firm expects earnings to decline modestly in fiscal year 2026, with operating margins contracting due to persistent cost inflation and higher selling, general, and administrative expenses. Despite these challenges, the stock’s valuation is already at a low point, which UBS believes will persist unless there is a fundamental improvement in the company’s growth prospects.

In another report released on June 2, Wells Fargo also maintained a Hold rating on the stock with a $23.00 price target.