Barclays Maintains an 'Overweight' on ConAgra (CAG); Willing to Budge on Timing vs. Magnitude

Barclays maintains an 'Overweight' on ConAgra (NYSE: CAG), PT $30.

Barclays analyst says, "With news today of CAG and Treehouse (NYSE: THS) both delayed on the pricing front, due to more retailer pushback, stringent disclosure requirements in fact-based selling, and a downtick in consumer confidence, it can be easy to see a negative tone to the food group overall, given others are likely to have to deal with the same issues. This is further emphasized when one considers that the group trades at a +20% premium vs. the market and an EPS acceleration is still needed in 2H11 to hit full year numbers...Returning to CAG specifically, none of this changes the thoughts behind our recent upgrade, which was based on a change in CAG's use of cash strategy and not current fundamentals. This is also why our FY12 estimate called for minimal EPS growth YOY in the first place - an assumption still reflected in our $1.76 forecast for FY12 (i.e. <1% growth YOY)."

For more ratings news on ConAgra click here and for the rating history of ConAgra click here.

Shares of ConAgra closed at $25.37 yesterday.

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