Commodity Inflation Concerns Prompt Evercore ISI to Cut Conagra (CAG) PT to $23

Conagra Brands, Inc. (NYSE:CAG) is one of the S&P 500 stocks with a low PE ratio. On September 24, Evercore ISI reiterated an In Line rating on CAG while slashing the target price from $24 to $23.

Evercore lowered its price target following a drop in its FY2026 EPS from $1.82 to $1.79, reflecting a 22% year-over-year dip. The firm pointed to higher commodity inflation, particularly in beef, as the main factor leading to the downward revision.

The research firm mentioned that fiscal year 2026 is another year of change for Conagra, pointing towards challenges such as rising expenses, potential tariffs, impacts from divesting brands, and investments in price and promotion strategies.

According to Evercore ISI, it will wait to see if Conagra can regain organic sales growth heading into FY 2027, with a spotlight on the Frozen and Snacks segments, which contribute to roughly two-thirds of sales.

The $23 price target equals 12 times the firm’s projected 2027 EPS, indicating a slight discount compared with Conagra’s five-year average PE ratio of 13x, which has ranged from 10x to 16x.

Conagra Brands, Inc. (NYSE:CAG) is an American food company that sells packaged consumer products. It has four main segments: Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice.

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