ConAgra (CAG) PT Lowered to $26 at Evercore ISI

Evercore ISI analyst David Palmer lowered the price target on ConAgra (NYSE: CAG) to $26.00 (from $31.00) while maintaining a In Line rating.

The analyst comments "Lowering FY26e EPS as we await Frozen and Snack growth: We believe FY26 cost headwinds (tariffs and commodity inflation) with limited pricing will likely make for another challenging and back-half weighted profit year (easier comparisons). As a result, we are lowering our FY26e EPS by 11% to $2.16 (-6% YoY; cons $2.24). While we continue to like the growth potential of Conagra’s Frozen and Snack segments (combined 65% of retail sales) we will wait for innovation & marketing to bolster volume trends and pricing power. With our lower estimates, our price target is reduced from $31 to $26 equal to 12x our CY27e EPS. Our target valuation is at a discount to the mid-point P/E of 13x (5-year two- standard deviation NTM range of 10-16x). We believe the 6.8% dividend yield could provide current valuation support."

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