UPDATE: UBS Starts ConAgra (CAG) at Neutral

November 14, 2016 7:05 AM EST
Get Alerts CAG Hot Sheet
Price: $38.89 -0.61%

Rating Summary:
    9 Buy, 4 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 24 | Down: 17 | New: 14
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(Updated - November 14, 2016 8:36 AM EST)

UBS initiated coverage on ConAgra (NYSE: CAG) with a Neutral rating and a price target of $36.

Analyst Steven Strycula said, "In the last 2 years ConAgra has transformed its portfolio under new leadership through asset divestitures, strategy shifts, and cultural change (moving HQ to Chicago from Omaha). Following the Nov 9th spin-off of Lamb Weston to shareholders, ConAgra is a leaner and less leveraged food manufacturer with ~1.5x net debt/EBITDA. From here ConAgra will take action to reshape its portfolio through synergy focused M&A and divesting underperforming brands using its $1.4b NOL asset. Operationally, ConAgra has significant heavy lifting ahead of it as the company rebases revenues to a more profitable core in FY17, reinvigorates investment-starved brands, cuts SG&A spend by $200m, and streamlines supply chain operations. Given the complexity and limited visibility into ConAgra's turnaround we prefer a more attractive risk/reward."

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 $34.93 yesterday.

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