RBC Capital Remains Bullish as ConAgra Brands (CAG) Distributes Lamb Weston Stock
RBC Capital maintained an Outperform rating on ConAgra Brands (NYSE: CAG), and cut the price target to $42.00 (from $54.00), following the distribution of Lamb Weston stock to shareholders.
Analyst David Palmer commented, "We are adjusting our price target to $42 from $54 to reflect the distribution of Lamb Weston stock to shareholders on 11/10. We continue to believe the company's new pure-play focus and M&A options warrant a higher valuation relative to peers versus its current and historical discount. We also envision upside to consensus and company gross margin expectations through improved revenue management and promotion effectiveness. Maintain Outperform rating."
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Shares of ConAgra closed at $34.30 yesterday.