Conagra Brands Inc (CAG) shares have recently reached a 20-day high, increasing by 3.03% amid positive market conditions.
However, the company is facing significant challenges, including a 35% drop in share price and a concerning 8.2% dividend yield, which reflects market worries about its future performance. In Q2 of fiscal 2026, Conagra reported a 6.8% decline in overall sales and a 3% drop in organic sales, indicating pressure from the shift towards healthier food options. Additionally, a $0.94 per share impairment charge contributed to a loss of $1.39 per share, raising concerns about brand value and future capital allocation.
These developments suggest that while the stock has seen a short-term gain, underlying issues may lead to further volatility and investor caution regarding the sustainability of dividends.
Wall Street analysts forecast CAG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CAG is 18.92 USD with a low forecast of 16.00 USD and a high forecast of 22.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
Wall Street analysts forecast CAG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CAG is 18.92 USD with a low forecast of 16.00 USD and a high forecast of 22.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Buy
12 Hold
1 Sell
Hold
Current: 17.680
Low
16.00
Averages
18.92
High
22.00
Current: 17.680
Low
16.00
Averages
18.92
High
22.00
Morgan Stanley
Megan Alexander Clapp
Equal Weight
downgrade
$19 -> $18
2026-01-16
Reason
Morgan Stanley
Megan Alexander Clapp
Price Target
$19 -> $18
AI Analysis
2026-01-16
downgrade
Equal Weight
Reason
Morgan Stanley analyst Megan Alexander Clapp lowered the firm's price target on Conagra Brands to $18 from $19 and keeps an Equal Weight rating on the shares. In "an already challenging backdrop" for U.S. food stocks, the firm sees rising competitive risk as value-focused pricing, promotions, and private label momentum reaccelerate into 2026, the analyst tells investors in a note on the group.
Wells Fargo
Equal Weight
downgrade
$19 -> $18
2026-01-05
Reason
Wells Fargo
Price Target
$19 -> $18
2026-01-05
downgrade
Equal Weight
Reason
Wells Fargo lowered the firm's price target on Conagra Brands to $18 from $19 and keeps an Equal Weight rating on the shares. As Wells aggregates models across Beverage/Food/HPC, the firm is revising its price targets into 2026.
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UBS
Peter Grom
Neutral
downgrade
$19 -> $18
2025-12-23
Reason
UBS
Peter Grom
Price Target
$19 -> $18
2025-12-23
downgrade
Neutral
Reason
UBS analyst Peter Grom lowered the firm's price target on Conagra Brands to $18 from $19 and keeps a Neutral rating on the shares.
RBC Capital
Sector Perform
downgrade
$22 -> $20
2025-12-22
Reason
RBC Capital
Price Target
$22 -> $20
2025-12-22
downgrade
Sector Perform
Reason
RBC Capital lowered the firm's price target on Conagra Brands to $20 from $22 and keeps a Sector Perform rating on the shares. Against subdued expectations and underperformance into the print, Conagra delivered a softer quarter on the topline but with better than feared profitability, the analyst tells investors in a research note. The quarter was noisy and impacted by several timing and one-time transitory factors, though consensus estimates likely come down within Conagra ranges, the firm added.
About CAG
Conagra Brands, Inc. is a branded food company. The Company’s segments include Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice. The Grocery & Snacks segment includes branded, shelf-stable food products sold in various retail channels in the United States. The Refrigerated & Frozen segment includes branded, temperature-controlled food products sold in various retail channels in the United States. The International segment includes branded food products in various temperature states, sold in various retail and foodservice channels outside the United States. The Foodservice segment includes branded and customized food products, including meals, entrees, sauces, and a variety of custom-manufactured culinary products that are packaged for sale to restaurants and other foodservice establishments primarily in the United States. Its brands include Birds Eye, Duncan Hines, Healthy Choice, Marie Callender's, Reddi-wip, Slim Jim, and Angie's BOOMCHICKAPOP.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
