Goldman Sachs Group Inc. lowered shares of ConAgra Foods (NYSE:CAG) from an overweight rating to a neutral rating in a research note issued to investors on Tuesday morning, Analyst Ratings Network reports. Goldman Sachs Group Inc. currently has $34.00 price objective on the stock, down from their previous price objective of $36.00.
“”Last week, we maintained our Overweight rating following the company’s negative pre-announcement. We then maintained it again after uncovering some Nielsen-related data points we interpreted as less than positive. But today we are capitulating, as we are lowering our numbers following a review of our model. We are starting to think consensus estimates contain downside risk: FY14E goes to $2.30 from $2.34 (consensus $2.37) and FY15E to $2.58 from $2.65 (consensus $2.65). And though we continue to see upside to guidance from cost synergies, we now think this is less important than the possibility that CAG’s sales disappoint for more than a quarter or two. As mentioned above, we think investors will favor better top lines for a while, an environment that does not necessarily favor ConAgra today. We also note the large amount of uncertainty regarding this company at the moment, including the exact reasons for the 1Q miss, the duration of the challenges, the potential for Ralcorp to recover, the impact of the loss of the potato business, the impact of the divestiture of the milling business, the potential for both top and bottom line synergies from Ralcorp, and the pace of debt paydowns. We establish a December 2014 price target of $33; our previous December 2013 target was $36.,” Goldman Sachs Group Inc.’s analyst commented.
Shares of ConAgra Foods (NYSE:CAG) opened at 32.07 on Tuesday. ConAgra Foods has a 1-year low of $26.87 and a 1-year high of $37.28. The stock has a 50-day moving average of $34.57 and a 200-day moving average of $34.99. The company has a market cap of $13.454 billion and a price-to-earnings ratio of 17.34.
A number of other analysts have also recently weighed in on CAG. Analysts at JPMorgan Chase & Co. downgraded shares of ConAgra Foods (NYSE:CAG) from an overweight rating to a neutral rating in a research note to investors on Tuesday. They now have a $34.00 price target on the stock, down previously from $36.00. Separately, analysts at Barclays Capital cut their price target on shares of ConAgra Foods (NYSE:CAG) from $40.00 to $38.00 in a research note to investors on Wednesday, September 11th. They now have an overweight rating on the stock. Finally, analysts at Credit Suisse cut their price target on shares of ConAgra Foods (NYSE:CAG) to $36.00 in a research note to investors on Wednesday, September 11th. They now have a neutral rating on the stock.
One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating, six have given a buy rating and one has issued a strong buy rating to the company. The stock has an average rating of Buy and an average target price of $37.08.
ConAgra Foods, Inc (NYSE:CAG) is a food company.
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