Conagra Brands (CAG) Faces Protein Cost Pressures but Retains Long-Term Growth Potential

Conagra Brands, Inc. (NYSE:CAG) ranks among the best stocks to buy for retirement. On August 20, JPMorgan began coverage of Conagra Brands, Inc. (NYSE:CAG) with a Neutral rating and a $20 price target, down from the previous $25. The firm cited persistent cost pressures, especially with protein and tariff-related charges, alongside volume issues for the packaged food company.

That said, JPMorgan pointed out that if industry conditions improve for the packaged food industry, Conagra Brands, Inc. (NYSE:CAG) might emerge as a “disproportionate winner” in spite of these obstacles.

The firm highlighted ConAgra’s lower-than-average margins, increased exposure to protein costs, reduced valuation, and higher debt burden as variables that might give rise to more margin volatility while also potentially benefiting the company’s share value in an industry-wide positive rerating.

Conagra Brands, Inc. (NYSE:CAG) is a leading packaged food manufacturer with a diversified portfolio of frozen meals, snacks, and plant-based products.

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Disclosure: None. This article is originally published at Insider Monkey.