Conagra Brands (CAG), a leading North American food company known for brands like Healthy Choice, Hunt's, and Birds Eye, released its earnings for the third quarter ending 25 February 2025. The company continues to navigate a challenging environment due to inflationary pressures, changing consumer behavior, and heightened promotional activity.
● Revenue: $2.84 billion, a 6.3% year-over-year decrease.
● Operating Profit: $238 million, down 52.5% from the previous year.
● Diluted EPS (GAAP): $0.30, representing a 53.1% decline.
● Free Cash Flow: $1.3 billion.
Analysts have maintained a 'Hold' rating on Conagra with a consensus 12-month price target averaging around $27.18. This suggests modest upside potential of approximately 1.49% from the current stock price. Recent analyst actions include Deutsche Bank adjusting its price target to $26 from $27 while maintaining a 'Hold' rating and Barclays raising its target to $29 from $27 with an 'Overweight' rating. These evaluations indicate a cautious outlook, reflecting concerns over volume trends and pricing power despite the company's efforts in cost management and strategic pricing.
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** This article was prepared by BROKSTOCK analyst Maboko Seabi
