On Tuesday, Citi updated its outlook on ConAgra shares, increasing the price target to $33.00 from the previous $30.00 while maintaining a Neutral rating.
The adjustment comes ahead of the company's scheduled earnings report for the first quarter of fiscal year 2025, which is set for October 2nd.
ConAgra, is anticipated to deliver first-quarter earnings that align with current market expectations. Citi's analysis suggests that the earnings per share (EPS) and Organic Sales Growth (OSG) will likely match the consensus estimates provided by Visible Alpha.
The analysts from Citi anticipate that ConAgra will likely reiterate its annual guidance following the release of its first-quarter results, a practice that the company has typically followed in the past. This expectation is based on the company's historical approach to guidance post-earnings announcements.
The current market sentiment towards ConAgra's stock appears to be leaning towards the positive, as indicated by the increased interest from investors on the long side as the earnings date approaches. This trend has been observed leading up to the earnings release.
In other recent news, Conagra Brands (NYSE:CAG) Inc. shareholders approved an amendment for officer exculpation and elected eleven nominees to serve as directors during their Annual Meeting.
Goldman Sachs initiated coverage on Conagra's stock, assigning a Buy rating due to its robust snack portfolio and recent acquisition of Sweetwood Smoke & Co., the maker of FATTY Smoked Meat Sticks. This high-protein snack aligns with Conagra's focus on convenience and health-conscious options. Meanwhile, Stifel and RBC Capital revised their price targets for Conagra, following the company's recent financial performance. Despite a minor decrease in revenue, Conagra's strategic investments and robust margin performance have led to a Hold rating from Stifel and a Sector Perform rating from RBC Capital.
Conagra's steady progress in fiscal year 2024 was marked by gains in its frozen and snacks segments and a robust improvement in free cash flow. However, the company anticipates fiscal year 2025 to be transitional, projecting a range of -1.5% to flat growth for organic net sales and an adjusted EPS of $2.60 to $2.65. Conagra's management team has been credited with significantly repositioning the company over the past nine years, including the acquisition of Pinnacle Foods in 2018.
InvestingPro Insights
ConAgra's financial health and market performance ahead of their earnings report can be further illuminated by InvestingPro data and tips. Notably, the company has a market capitalization of $15.48 billion and is trading at a P/E ratio of 44.46, which suggests a higher earnings multiple compared to the industry average. However, when adjusted for the last twelve months as of Q4 2024, the P/E ratio becomes more attractive at 13.33, indicating potential undervaluation relative to earnings. Additionally, the company's dividend yield stands at an appealing 4.33%, coupled with a dividend growth of 6.06% in the same period, reflecting ConAgra's commitment to returning value to shareholders.
Two InvestingPro Tips that may interest investors are ConAgra's consistent history of dividend payments, with the company maintaining these payments for 49 consecutive years, and the expectation that net income is projected to grow this year. These factors, combined with the company trading near its 52-week high and analysts predicting profitability, could signal confidence in ConAgra's financial stability and growth prospects.
For investors seeking more in-depth analysis, there are additional InvestingPro Tips available, including insights into the company's shareholder yield and valuation implications based on strong free cash flow yield. To explore these further, investors can visit InvestingPro's platform for a comprehensive set of tips and metrics tailored to ConAgra.
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