UBS Maintains Neutral Rating on Conagra Brands (CAG)

Conagra Brands, Inc. (NYSE:CAG) is 1 of the apical cheap stocks nether $20 to bargain now. UBS expert Peter Grom chopped the terms people connected Conagra Brands, Inc. (NYSE:CAG) to $18 from $19 connected December 23 and maintained a Neutral standing connected the shares.

The standing came aft Conagra Brands, Inc. (NYSE:CAG) reported results for fiscal Q2 2026 connected December 19, announcing that the reported nett income for the 4th dropped 6.8% portion the integrated nett income decreased 3.0%. Reported operating borderline for the 4th was 20.1%, portion the adjusted operating borderline was 11.3%.

Conagra Brands, Inc. (NYSE:CAG) further reported that the reported diluted nett nonaccomplishment per stock for fiscal Q2 2026 came up to $1.39, chiefly owed to definite non-cash goodwill and marque impairment charges. Adjusted net per stock (EPS) came up to $0.45.

Management reported that the driblet successful integrated nett income was driven chiefly by level price/mix and a 3.0% alteration successful volume, portion nett income were affected by an astir 100 ground constituent headwind, which was driven by changes successful retailer purchasing enactment astir 4th end. These included the timing of retailer merchandising events and the associated inventory builds.

Furthermore, the price/mix was impacted by an astir 60 ground constituent headwind related to a alteration successful estimation associated with fiscal 2025’s 2nd 4th commercialized disbursal accrual, on with unfavorable merchandise mix. Conagra Brands, Inc. (NYSE:CAG) reaffirmed its fiscal 2026 guidance and expects adjusted operating borderline betwixt ~11.0% and ~11.5% and adjusted EPS betwixt $1.70 and $1.85.

Conagra Brands, Inc. (NYSE:CAG) is simply a consumer-packaged goods nutrient institution that operates successful 3 segments: Grocery & Snacks, Refrigerated & Frozen, and International. Its marque portfolio encompasses Birds Eye, Duncan Hines, Healthy Choice, Marie Callender’s, Reddi-wip, and BOOMCHICKAPOP.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.