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Posted by
Two Blokes Jun 25 -
Filed in
Stock
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3 views
Initiating Strong Buy with $35 PT as the market over-discounts Conagra's resilient cash flow and margin defensiveness amid structural headwinds and negative sentiment. Our thesis hinges on underestimated productivity gains, disciplined capital allocation, and brand share resilience, positioning CAG for margin normalization and equity re-rating. We model conservative FY26 EPS of $1.85, factoring in persistent inflation, tariff risk, and supply chain drag, supporting a 19x P/E valuation versus Street optimism.
