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Conagra Brands Stock Falls After Downgrade. Rising Meat Prices Are to Blame. - Barron's

1. BofA downgraded CAG to Underperform, lowering price target to $20. 2. Rising meat costs significantly impact Conagra’s profit margins. 3. Analysts project 6.7% growth in costs, led by 25% meat price hikes. 4. CAG's earnings forecast for fiscal 2026 reduced to $2 per share. 5. Shares have declined 21% in 2025, nearing a 52-week low.

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FAQ

Why Very Bearish?

The downgrade to Underperform and lowered target price suggests significant negative sentiment. Additionally, expected rising costs, especially in meat, pose serious profitability concerns historically affecting consumer stocks.

How important is it?

The article contains critical analyst insights and concrete financial adjustments likely to affect investor perceptions and trading behavior.

Why Short Term?

Immediate impacts from the downgrade and earnings forecast cut are expected before the fiscal Q4 report on July 10.

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