Conagra Brands price target lowered to $33 from $37 at Goldman Sachs

Goldman Sachs lowered the firm’s price target on Conagra Brands to $33 from $37 and keeps a Neutral rating on the shares. The company’s Q1 results were “mixed” and its Q2 guidance was disappointing, the analyst tells investors in a research note. The weakness seen for leading packaged food companies is not due to a demand lull but is instead due to share of stomach shifts as mix is shifting to fresh food in the store while declines in packaged food categories are being compounded for brands by trade-down within the categories, the firm states, adding that both of these dynamics were evident pre-Covid and are not expected to subside.