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Conagra Brands downgraded to Underperform at BofA on protein cost headwinds

BofA downgraded Conagra Brands (CAG) to Underperform from Neutral with a price target of $20, down from $27. The firm’s detailed cost of goods estimates for the next 12 months shows protein inflation for chicken, beef and pork is set to be a “meaningful headwind” to earnings growth, says the analyst, who notes that the company’s new target now reflects lower FY26-FY27 EPS estimates that are about 15% below consensus as well as a lower calendar year 2026 P/E valuation multiple.

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