Conagra Brands (CAG) Stock Forecast & Price Target

Conagra Brands is experiencing positive momentum with approximately 44% of its portfolio holding or gaining market share, an increase from 39% in the previous fiscal quarter, indicating improved competitiveness and consumer preference despite past supply chain challenges. The company's advertising and promotional expenses (A&P) are projected to rise to around 2.5% of sales, suggesting a strategic focus on enhancing brand visibility and driving revenue growth. Furthermore, the company's strong reliance on the U.S. market for 91% of fiscal 2025 revenue highlights a solid foundation in a familiar and profitable domestic consumer landscape, particularly within the frozen food segment, which includes well-known brands.

Conagra Brands is projected to experience profitability challenges in Q2 due to modestly higher inflation and the depletion of pre-tariff inventory, resulting in operating margins expected to dip below the forecasted full-year range of 11-11.5%. The company's earnings per share (EPS) estimate has been reduced to $1.73, down from $1.74, largely driven by declining gross margins attributable to these inflationary pressures. Furthermore, the organic sales outlook for fiscal year 2026 remains stagnant at +0.2%, reflecting anticipated softness in Q2 and a slower recovery in the latter half of the year.