ConAgra stock price target lowered to $19 from $20.50 at TD Cowen

Investing.com - TD Cowen has reduced its price target on ConAgra (NYSE:CAG) to $19.00 from $20.50 while maintaining a Hold rating on the food company’s stock. The stock, currently trading at $18.97, sits near its 52-week low of $18.82, with InvestingPro data showing a P/E ratio of 7.86 and an attractive dividend yield of 7.18%.

The adjustment comes as ConAgra joins other food companies in announcing a significant reset to its margin structure to accommodate investment spending and inflationary pressures that exceed pricing capabilities.

TD Cowen expressed agreement with ConAgra’s decision to invest but remains skeptical about the company’s path to positive top-line growth, citing the portfolio’s exposure to lower-income consumers and limited pricing power.

The firm’s analysis suggests ConAgra faces ongoing challenges in balancing necessary investments with margin preservation in the current economic environment.

This price target reduction reflects TD Cowen’s updated assessment of ConAgra’s near-term financial outlook following what the firm described as "another miss" in the company’s performance.

In other recent news, ConAgra Brands has been the subject of several analyst reports following its fourth-quarter earnings announcement and fiscal year 2026 outlook. The company reported fourth-quarter earnings that missed expectations, with a decrease in organic sales by 3.5% and a contraction in gross margin. ConAgra’s fiscal year 2026 guidance projects organic sales between -1% and +1% and a significant decline in earnings per share, attributed to factors like inflation, tariffs, and investments in volume growth. In response to these developments, several firms have adjusted their price targets and ratings on ConAgra’s stock.

Bernstein lowered its price target to $21, citing challenges such as external factors and shifting consumer demand. UBS also reduced its price target to $20, expressing concerns about ConAgra’s growth projections and recent performance. Stifel adjusted its target to $21 after the earnings miss, while Evercore ISI set a target of $24, noting the importance of stabilizing volume in key segments. Wells Fargo (NYSE:WFC) decreased its price target to $20, highlighting concerns about sales trajectory and margin execution. These adjustments reflect the broader skepticism among analysts about ConAgra’s near-term financial performance and strategic direction.

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