Conagra stock upgraded on growth potential from Pinnacle deal

Conagra stock upgraded on growth potential from Pinnacle deal

Conagra Brands Inc. CAG, +3.20% was upgraded to buy from neutral at UBS on the company’s long-term growth potential, which stems in large part from its $8.2 billion acquisition of Pinnacle Foods. Analysts raised Conagra’s price target to $40 from $38. Over the next three years, UBS is expecting Conagra’s accelerating performance metrics, including volume growth and reduced discounting, along with synergies from the Pinnacle deal will drive a 9% compound annual growth rate (CAGR) through fiscal 2022. Conagra shares are down 4.5% over the past month, with the company’s most recent earnings missing expectations. Analysts think there’s a “dislocation” in the stock price, and the “perceived” risks are “overstated.” Conagra shares are down nearly 8% for the year to date while the S&P 500 index SPX, -0.71% has rallied 7.3% for the period.

Have breaking news sent to your inbox. Subscribe to MarketWatch’s free Bulletin emails. Sign up here.

Related posts