Conagra Brands (CAG) Stock Forecast & Price Target

Conagra Brands is demonstrating positive momentum, with 44% of its portfolio holding or gaining market share across various categories, an improvement from 39% in the prior fiscal quarter. The company's anticipated increase in advertising and promotion expenses to approximately 2.5% of sales suggests a strategic push towards enhancing brand visibility and competitiveness. Additionally, the expected reversal of short-term trade timing effects indicates a potential stabilization in financial performance, reinforcing a favorable outlook for the company's growth prospects.

Conagra Brands is experiencing margin pressure due to higher inflation and the depletion of pre-tariff inventory, resulting in anticipated operating margins for Q2 falling below the projected range of 11-11.5%. Consequently, the company's earnings per share (EPS) estimate has been slightly reduced to $1.73 from $1.74, primarily attributable to lower gross margins impacted by inflationary factors. Additionally, the organic sales outlook for fiscal year 2026 remains stagnant at a modest growth rate of just 0.2%, suggesting a softening demand in the latter half of the year.