ConAgra stock price target lowered to $20 by UBS on growth concerns

Investing.com - UBS lowered its price target on ConAgra (NYSE:CAG) to $20.00 from $21.00 on Friday, while maintaining a Neutral rating on the food company’s stock. The stock, currently trading near its 52-week low of $18.82, appears undervalued according to InvestingPro analysis.

The price target reduction comes as UBS expressed skepticism about ConAgra’s fiscal year 2026 outlook, particularly regarding the company’s projected second-half organic revenue growth, which the firm characterized as "aggressive."

UBS cited ConAgra’s current tracked trends showing low-single-digit declines and ongoing market share challenges as factors that could impede the company’s growth targets. The firm also pointed to ConAgra’s weaker quarterly execution in recent periods as a concern.

The analysis projects ConAgra’s first-half 2026 earnings per share to decline approximately 40% year-over-year, suggesting significant near-term pressure on the company’s financial performance.

With shares trading at more than 11 times UBS’s revised fiscal year 2026 earnings estimate after the report, the firm described ConAgra as a "show-me story" and maintained its neutral stance on the stock.

In other recent news, ConAgra Brands reported disappointing fourth-quarter fiscal 2025 results, with earnings per share (EPS) of $0.56 missing the forecasted $0.59 and revenue falling short at $2.78 billion compared to the anticipated $2.85 billion. The company’s guidance for fiscal year 2026 indicates a challenging period ahead, with projected organic sales growth between -1% and +1%, operating margins of 11% to 11.5%, and adjusted EPS between $1.70 and $1.85, marking a significant decline. Analysts from Stifel, Evercore ISI, Wells Fargo (NYSE:WFC), and BofA Securities have all lowered their price targets for ConAgra, citing concerns over the company’s outlook and cost pressures. Stifel reduced its price target to $21, Evercore ISI to $24, Wells Fargo to $20, and BofA to $18, each maintaining their respective ratings on the stock. These firms highlight ConAgra’s struggles with inflation, tariffs, and investments in growth, particularly in its Frozen and Snacks segments. ConAgra’s strategy includes focusing on premiumization and innovation, while also planning to pay down $700 million in debt this year. The company anticipates a challenging first half of fiscal 2026, with potential improvements in the latter half.

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