Jefferies Upgrades ConAgra (CAG) to Buy, Says Ralcorp Deal a 'Game Changer'

November 30, 2012 7:17 AM EST
Get Alerts CAG Hot Sheet
Price: $38.82 -0.79%

Rating Summary:
    9 Buy, 4 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 22 | Down: 17 | New: 13
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Jefferies upgraded ConAgra (NYSE: CAG) from Hold to Buy with a price target of $35.00 (from $29.00).

The firm comments, "In our view, the pending Ralcorp acquisition is a game changer for CAG that will accelerate the top line growth for the foreseeable future and should help the valuation multiple, creating upside for the stock price. The acquisition puts CAG into better growth categories, a long time goal of management, without creating competition to the company’s branded portfolio."

The firm raised FY12 EPS from $2.04 to $2.06 and FY13 from $2.15 to $2.26.

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 $29.60 yesterday.

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