Wells Fargo Trims ConAgra (CAG) Price Target, Maintains Equal Weight Rating

On June 2, Wells Fargo reduced its price target on ConAgra Brands, Inc. (NYSE:CAG) to $23 from $27, maintaining an Equal Weight rating ahead of what it sees as a challenging near-term setup. The firm anticipates the company will fall short of consensus expectations for its fiscal fourth quarter on both revenue and earnings per share.

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In a note to clients, analysts flagged potential headwinds that could pressure results, including ongoing softness in consumer demand, cost inflation, and a competitive retail environment. These factors are expected to weigh on performance, prompting a likely reset in fiscal 2026 guidance that could come in well below current Street forecasts. While Wells Fargo acknowledged that some of these difficulties are industry-wide and not unique to ConAgra Brands, Inc. (NYSE:CAG), the firm believes a re-basing of expectations is necessary before investors can re-engage with the stock’s longer-term positives. These include a stable portfolio of recognizable brands and prior success in cost management.

The lowered price target reflects a more cautious view on near-term earnings visibility, particularly as macroeconomic pressures persist. However, the Equal Weight rating signals that while risks are elevated, the firm sees no clear reason to be bearish either.

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