Jefferies Cuts Price Target on ConAgra Brands (CAG) Following LW Spinoff

November 30, 2016 8:14 AM EST
Get Alerts CAG Hot Sheet
Price: $36.89 +1.15%

Rating Summary:
    8 Buy, 5 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 11 | Down: 31 | New: 42
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Jefferies maintained a Buy rating on ConAgra Brands (NYSE: CAG), and cut the price target to $43.00 (from $56.00), following the LW spinoff. Estimates are unchanged and remain in line with mgmt’s LT guidance. Mgmt is guiding to 1-2% annual sales growth, 4-5% EBIT growth, ~10% EPS growth and ~12% annual TSR after dividends.

Analyst Akshay Jagdale commented, "With the LW spinoff now complete, we are reintroducing our estimates for CAG Brands & establishing a $43 PT. We continue to like CAG owing to: 1) attractive LT margin expansion opportunity; 2) significant cash generation potential from asset sales using $4.2B tax loss carry-forward; 3) portfolio reshaping efforts & increased focus should improve LT growth profile; 4) M&A optionality; and 5) attractive valuation relative to peers. We reiterate our Buy rating."

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 $37.72 yesterday.



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