Conagra Brands (CAG) Stock Forecast & Price Target

Conagra Brands is experiencing significant market share improvements, with 44% of its portfolio either holding or gaining share in their respective categories, a rise from 39% in the previous quarter. Notably, the company has captured 52.9% of the single-serve frozen meals market, reflecting recovery from prior supply chain disruptions. Additionally, the expected sales growth range of -1% to +1% indicates a potential return to growth in the latter half of the fiscal year, bolstered by innovation and the easing of supply chain challenges.

Conagra Brands is expected to experience declining profitability in the near term, with Q2 operating margins projected to fall below the annual range of 11-11.5% due to inflationary pressures and the exhaustion of pre-tariff inventory. Adjustments to earnings per share estimates indicate a downward revision to $1.70, attributed to reduced gross margins and increased advertising and promotion costs in the second half of the fiscal year. Furthermore, the company's FY’26 organic sales growth forecast remains stagnant at only 0.2%, reflecting anticipated weakness in sales performance.