Conagra Brands price target lowered to $23 from $27 at Jefferies

Jefferies analyst Scott Marks lowered the firm’s price target on Conagra Brands (CAG) to $23 from $27 and keeps a Hold rating on the shares. The company’s recent announcement to divest Chef Boyardee was the first step in a longer journey, in the firm’s view, as management pursues an increased focus on frozen food and healthier snacking. That said, asset sale value of 6-6.5-times EBITDA, 3-3.5 turns below where Conagra was valued at the time, suggests the business possibly had limited attractive options in terms of noncore divestments and raises questions about intrinsic value of other brands, Jefferies argues.