Stifel Reduces PT on Conagra Brands (CAG) Stock

Conagra Brands, Inc. (NYSE:CAG) is one of the Best Mid Cap FMCG Stocks to Buy Now. Stifel analyst Matthew Smith reduced the price objective on the company’s stock to $21 from $26, while keeping a “Hold” rating, as reported by The Fly. Conagra Brands, Inc. (NYSE:CAG)’s EPS miss compared to estimates was due to the lower-than-expected sales and margin performance, according to the firm’s analyst. Notably, the company posted diluted EPS of $0.53 for Q4 2025, and adjusted EPS decreased 8.2% to $0.56.

A worker assembling a meal in a food production facility.

Furthermore, the contraction in gross margin was due to lower sales, inflation, and negative operating leverage. These factors more than offset the increased productivity savings, opines the analyst. Conagra Brands, Inc. (NYSE:CAG)’s gross margin fell 228 bps to 25.4% in Q4 2025, and adjusted gross margin declined 184 bps to 25.8%. In FY 2026, Conagra Brands, Inc. (NYSE:CAG) expects elevated inflation and macroeconomic uncertainty to persist. However, it is focused on proactively managing the business through investments in its high-potential frozen and snacks domains, prioritizing volume strength, and further enhancing the supply chain resiliency, while at the same time, maintaining disciplined cost management and emphasis on cash flow.

Conagra Brands, Inc. (NYSE:CAG) opines that such actions can enable the company to deliver sustainable growth and stronger margins over time.

Conagra Brands, Inc. (NYSE:CAG) operates as a consumer-packaged goods food company.

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Disclosure: None. This article is originally published at Insider Monkey.