Update shared on27 Aug 2025
Fair value Decreased 2.26%Analysts have lowered Conagra Brands’ price target to $20.93, citing weak Q4 results, a disappointing FY26 outlook, and persistent inflationary and demand headwinds that outweigh positive brand investments.
Analyst Commentary
- Bearish analysts cite Conagra’s weak Q4 performance and an FY26 outlook that misses Street estimates, prompting widespread price target reductions.
- Analysts highlight ongoing inflationary pressures, tariff headwinds, and guidance that reflects a challenging demand environment, particularly among low-income consumers.
- Bullish analysts point to Conagra’s significant investments in brand support and supply chain flexibility, which are deemed essential for future volume and market share recovery.
- Structural challenges, including lack of pricing power and exposure to SNAP cuts, are seen as limiting factors for margin expansion and earnings stability.
- The food producers sector broadly faces soft center store category growth and market share losses, suggesting longer-term industry-wide pressures for Conagra.
What's in the News
- Conagra Brands has launched over 50 new frozen food products in June 2025, introducing offerings across its major brands including expanded single-serve, family-size, gluten-free, plant-based, and international cuisine options, with notable launches under brands such as Dolly Parton’s, Banquet, Healthy Choice, Marie Callender’s, P.F. Chang’s, evol, Frontera, and Hungry-Man (Key Developments, 2025-06-11).
- The company remains a market leader in the frozen foods category, with quarterly net sales exceeding $1 billion and strong innovation driving portfolio expansion (Key Developments, 2025-06-11).
- Conagra issued fiscal year 2026 guidance, projecting organic net sales growth between -1% and +1% versus fiscal 2025, indicating expectations for a relatively flat sales environment (Key Developments, 2025-07-10).
- No shares were repurchased by Conagra Brands between February 24 and May 25, 2025, concluding the ongoing buyback program with 136.2 million shares (31.16% of shares outstanding) bought back since the program’s initiation in 2010, totalling $4.2 billion (Key Developments, 2025-07-10).
- Broader industry scrutiny continues regarding ultra-processed foods, additives, and pesticides, with Conagra listed among major publicly traded food companies facing debate around regulatory proposals to limit certain food industry practices (WSJ, 2025-06-20).
Valuation Changes
Summary of Valuation Changes for Conagra Brands
- The Consensus Analyst Price Target has fallen slightly from $21.42 to $20.93.
- The Future P/E for Conagra Brands has fallen slightly from 14.07x to 13.43x.
- The Net Profit Margin for Conagra Brands remained effectively unchanged, moving only marginally from 7.77% to 7.93%.
Disclaimer
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