ConAgra Foods (CAG): Holding Steady Into Earnings on Thursday - RBC

RBC Capital analyst, David Palmer, is maintaining his slightly below-consensus F4Q16 EPS on ConAgra Foods (NYSE: CAG) into fiscal year-end results on 6/30. He also forecasts a slight comparable margin decline due to higher marketing/incentive costs, and increased merchandising in frozen entrées (26% of measured sales). The analyst also sees multiple potential M&A scenarios including: 1) potential near-term sale (instead of spin-off) of Lamb Weston (LW), 2) the value of LW, 3) potential future M&A (e.g. with Pinnacle Foods) and 4) long-term productivity.

No change to Sector Perform rating or price target of $48.

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 $46.95 yesterday.

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