Analyst Peter Galbo of Bank of America Securities maintained a Sell rating on Conagra Brands, retaining the price target of $18.00.
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Peter Galbo has given his Sell rating due to a combination of factors impacting Conagra Brands. Despite the company reporting a better-than-expected adjusted EPS for the first quarter of 2026, the favorable trade expense timing that contributed to this performance is anticipated to reverse in the second quarter, potentially leading to declines in organic sales and operating margins.
Additionally, the company’s reaffirmed financial outlook for fiscal year 2026 includes expectations of higher inflation, which could pose challenges. Conagra’s elevated leverage compared to its peers and the higher elasticity of its product portfolio also contribute to a less favorable outlook. These factors, combined with a price objective of $18, which is below the current trading price, underpin the Sell rating.
According to TipRanks, Galbo is an analyst with an average return of -1.2% and a 43.46% success rate. Galbo covers the Consumer Defensive sector, focusing on stocks such as Primo Brands, PepsiCo, and The Hershey Company.
In another report released yesterday, Wells Fargo also maintained a Sell rating on the stock with a $20.00 price target.