RBC Capital reiterated a Sector Perform rating and $46.00 price target on ConAgra (NYSE: CAG) following the company's 1Q16 earnings results. EPS was reported at $0.45 beating consensus of $0.40. After a -7% pullback, Analyst David Palmer believes the risk reward is improving for ConAgra’s stock.

Palmer commented, "We are maintaining our FY16e EPS ($2.34 vs. consensus $2.37) after a slight 1FQ EPS beat yesterday of $0.45 ($0.44 vs. consensus $0.40). Although the Private Brands sale may be delayed slightly, we believe it will bring stronger focus to the remaining divisions. We also anticipate additional SG&A and promotion rationalization."

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 $39.40 yesterday.