Morgan Stanley downgraded Conagra Brands to Equal Weight from Overweight with a price target of $37, down from $46. The analyst sees headwinds to the company’s growth outlook from softening packaged food volumes, risk of increasing trade down, and potential for increasing reinvestment limiting earnings growth. The firm says its prior Overweight thesis, which was partly predicated on Conagra benefiting from a shift to food-at-home consumption against a tougher consumer backdrop, is not playing out.
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