Conagra Brands’ Outlook Takes a Hit
Analyst Downgrades Price Target Amidst Inflation Concerns
Bank of America analyst Peter Galbo has reduced the price target for Conagra Brands (CAG) from $31 to $29, maintaining a Neutral rating on the shares. This move comes despite the company’s Q2 earnings beat, as Galbo cites concerns over decreasing gross margins due to inflation and promotional activities.
Gross Margins Under Pressure
The analyst has lowered the firm’s FY25-FY27 EPS estimates to $2.45, $2.48, and $2.54, respectively, driven by the anticipated reduction in gross margins. Additionally, adverse foreign exchange rates are expected to have a modest impact on the company’s performance.
Challenges Ahead
Conagra Brands faces significant challenges in the current economic environment. The company’s ability to navigate these headwinds will be crucial in determining its future success. Meanwhile, investors are advised to exercise caution and carefully consider their investment decisions.
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