Conagra Brands (CAG) Stock Forecast & Price Target

Conagra Brands is positioned for positive growth, with 44% of its product portfolio either holding or gaining market share, a significant increase from 39% in the previous quarter. The company's recovery from prior supply chain challenges is evident, particularly in the single-serve frozen meals segment, where market share has risen to 52.9%. Additionally, as advertising and promotion expenses are projected to increase to approximately 2.5% of sales, this strategic investment supports expectations for revenue growth in the latter half of the fiscal year, driven by innovation and improved service.

Conagra Brands is facing significant challenges impacting its profitability, particularly in the upcoming quarters, as inflationary pressures and reduced gross margins are anticipated to lower operating margins below the company's target range of 11-11.5%. The company's earnings per share (EPS) estimates have been revised downward, dropping from $1.74 to $1.70 due to these same inflationary factors and increased advertising and promotion (A&P) expenses. Furthermore, the organic sales outlook for fiscal year 2026 has been maintained at a modest growth rate of only 0.2%, suggesting a slowdown in revenue generation amidst these financial headwinds.