Barclays Maintains an 'Overweight' on ConAgra (CAG); Deal Does 'Knot' Limit CAG's Flexibility
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Rating Summary:
7 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 24 | New: 24
Barclays maintains an 'Overweight' on ConAgra (NYSE: CAG) price target of $30.00.
Barclays analyst says, "CAG announced an agreement to acquire National Pretzel Company, a leading private label pretzel manufacturer with sales approaching $200mm per annum, from Brookstone Holdings. While a small transaction for CAG, we do think this deal makes sense both strategically and financially. Plus, perhaps most importantly, given the size of the deal, we do not anticipate this precluding CAG from doing a larger scale transaction and/or returning cash to shareholders through other means."
"All in, while we do not expect this deal to solve the issue of how CAG leverages its balance sheet optionality, we do think this transaction makes sense and may ease some investor concerns that CAG might pursue a transformational transaction simply for the sake of doing a deal."
For an analyst ratings summary and ratings history on ConAgra click here. For more ratings news on ConAgra click here.
Shares of ConAgra closed at $24.77 yesterday, with a 52 week range of $21.02-$26.60.
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