On Friday, Citi adjusted its outlook on ConAgra shares (NYSE: CAG), reducing the price target to $30 from the previous $32 while retaining a Neutral rating on the stock. The adjustment comes as the food producer is poised to release its fiscal fourth-quarter 2024 results on July 11th.
Citi's projection for ConAgra's upcoming report anticipates organic sales growth and earnings per share (EPS) to slightly surpass the consensus estimates from Visible Alpha. This anticipation could potentially be favorable to investors, especially following a significant shortfall from General Mills (NYSE:GIS).
Despite the optimistic forecast for the fourth quarter, Citi expresses caution regarding the fiscal year 2025. The firm predicts that ConAgra's organic sales growth and EPS may fall short of the consensus estimates for the next fiscal year.
The firm indicates that recent discussions suggest the market may not be greatly surprised by a potential downturn in the FY25 estimates. However, the response from investors to this prospect remains uncertain, as it may not be well-received.
Investors and market watchers are now looking ahead to ConAgra's report in July to gauge the company's performance and assess its trajectory against the backdrop of Citi's revised expectations.
In other recent news, Conagra Brands (NYSE:CAG) has reported promising third-quarter results for the fiscal year 2024, surpassing consensus estimates in revenue, EBIT, and EPS. The company also maintained steady organic sales growth in its international operations. On the other hand, Conagra's Refrigerated & Frozen segment experienced a decline in organic sales.
In a bid to enhance operations, Conagra has partnered with tech giant Microsoft (NASDAQ:MSFT) and professional services firm Ernst & Young LLP (EY) to advance its AI initiatives. The company recently appointed Noelle O'Mara as Executive Vice President & President, New Platforms and Acquisitions, aiming to identify and scale new growth platforms and acquisitions. Barclays (LON:BARC) also adjusted its price target for Conagra from $31.00 to $34.00, maintaining its Overweight rating on the stock.
InvestingPro Insights
With ConAgra's (NYSE: CAG) fiscal fourth-quarter 2024 results on the horizon, a dive into real-time data from InvestingPro reveals key metrics that could interest investors. The company boasts a market capitalization of $13.55 billion and trades at a P/E ratio of 14.2, reflecting a valuation that might appeal to value-oriented investors. Notably, the adjusted P/E ratio for the last twelve months as of Q3 2024 stands at an even more attractive 10.7, with a PEG ratio of 0.74 suggesting potential for earnings growth relative to its peers.
InvestingPro Tips highlight ConAgra's strong shareholder return profile, including a high shareholder yield and a track record of raising its dividend for 4 consecutive years. Furthermore, the company has maintained dividend payments for 49 consecutive years, with a generous dividend yield of 4.94% as of mid-2024. Alongside these strengths, analysts predict the company will be profitable this year, supported by profitability over the last twelve months.
For a deeper analysis and more InvestingPro Tips, visit https://www.investing.com/pro/CAG and discover additional insights to inform your investment strategy. Take advantage of an exclusive offer with the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and explore the 7 additional tips listed in InvestingPro for ConAgra.
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