ConAgra stock price target lowered to $24 at Evercore ISI

Investing.com - Evercore ISI lowered its price target on ConAgra (NYSE:CAG) to $24.00 from $26.00 on Friday, while maintaining an "In Line" rating on the food company’s stock. The stock, currently trading at $19.49, near its 52-week low of $18.82, offers a substantial 7.18% dividend yield. According to InvestingPro analysis, ConAgra appears undervalued at its current P/E ratio of 8.49x.

The firm expects fiscal year 2026 to be "another transition year" for ConAgra, with over 20% decline in earnings per share due to higher costs and price/promotion investments. InvestingPro data shows 4 analysts have recently revised their earnings estimates downward, though the company maintains strong fundamentals with 14 additional ProTips available to subscribers.

Evercore ISI identified stabilizing volume and volume share as important early indicators that ConAgra can return to sales and profit growth, particularly in its Frozen and Snacks segments, which represent approximately 65% of the company’s sales.

These segments have historically responded to innovation and demonstrated relative pricing power, according to the research note.

The new $24 price target represents 12 times Evercore’s calendar year 2027 estimated earnings per share, reflecting a discount to the mid-point price-to-earnings ratio of 13x, compared to the five-year two-standard deviation next-twelve-months range of 10-16x.

In other recent news, ConAgra Brands reported its fourth-quarter fiscal 2025 earnings, revealing a miss on both earnings per share (EPS) and revenue expectations. The company posted an EPS of $0.56, falling short of the forecasted $0.59, and revenue came in at $2.78 billion, below the anticipated $2.85 billion. Following these results, Wells Fargo (NYSE:WFC) lowered its price target for ConAgra to $20, maintaining an Equal Weight rating, citing concerns about sales trajectory and gross margin execution. BofA Securities also reduced its price target to $18, maintaining an Underperform rating, due to a fiscal year 2026 outlook that was below expectations.

Wells Fargo highlighted the need for ConAgra to achieve significant productivity gains to meet its operating margin outlook. Meanwhile, BofA noted that ConAgra faces elevated cost inflation, particularly in protein, which constitutes about 12% of its cost of goods sold. ConAgra anticipates overall inflation to reach 7% in fiscal 2026, with ongoing investments in innovation and merchandising to re-accelerate volume growth. The company plans to pay down $700 million in debt and focuses on premiumization and innovation in its frozen and snacks categories. Despite these challenges, ConAgra aims for improvements in the second half of fiscal 2026, with a focus on financial health and stability.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.