UPDATE: UBS Upgrades ConAgra (CAG) to Buy, a Different Inflation Cycle
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Price: $35.92 +0.39%
Rating Summary:
7 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
7 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade CAG Now!
(Updated - September 21, 2012 1:41 PM EDT)
UBS upgraded ConAgra (NYSE: CAG) from Neutral to Buy and raised its price target from $27 to $31.
The firm cited: 1) better margin management during this time of the inflation cycle relative to the last cycle, 2) a robust international growth story with Lamb Weston, 3) accretive M&A/further M&A optionality, and 4) valuation
UBS said the food inflation cycle is playing out differently from 4 years ago, especially for ConAgra. "On the back end of inflation in ‘09 ConAgra and others were quick to deal back pricing and shoot for market share since they believed that inflation was behind them," the analyst explains. "This time around, ConAgra and others seem to have learned from that experience and are wise about becoming more promotional - particularly since inflation will likely return by mid-calendar 2013."
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 $27.24 yesterday, with a 52 week range of $22.39-$27.75.
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UBS upgraded ConAgra (NYSE: CAG) from Neutral to Buy and raised its price target from $27 to $31.
The firm cited: 1) better margin management during this time of the inflation cycle relative to the last cycle, 2) a robust international growth story with Lamb Weston, 3) accretive M&A/further M&A optionality, and 4) valuation
UBS said the food inflation cycle is playing out differently from 4 years ago, especially for ConAgra. "On the back end of inflation in ‘09 ConAgra and others were quick to deal back pricing and shoot for market share since they believed that inflation was behind them," the analyst explains. "This time around, ConAgra and others seem to have learned from that experience and are wise about becoming more promotional - particularly since inflation will likely return by mid-calendar 2013."
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 $27.24 yesterday, with a 52 week range of $22.39-$27.75.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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