Conagra Brands downgraded to Sell from Hold at Deutsche Bank

Deutsche Bank analyst Steve Powers downgraded Conagra Brands to Sell from Hold with a price target of $34, up from $33. Although Conagra’s U.S. consumption data remains solid, there is potential downside over time from packaged food trade down and/or trade out of frozen meals, especially as consumers come under more pressure and continue to tighten spending, Powers tells investors in a research note. The analyst expects a rising cost of customer retention owing to intensifying competition across food categories. He believes consensus estimates "do not bake in enough conservatism." As such, Conacre’s current risk/reward is "skewing increasingly negative," Powers writes.