Market Experts Lower Targets for Conagra Brands Following Quarterly Report

Several prominent financial institutions have revised their outlook for Conagra Brands, with a wave of price target reductions hitting the U.S. packaged foods giant this week. This cautious stance from Wall Street follows the company's release of its second-quarter fiscal 2026 results, which presented a mixed financial picture and included a significant non-cash impairment charge.

The figures disclosed last Friday revealed underlying challenges. While Conagra's adjusted earnings per share of $0.45 narrowly surpassed the consensus estimate of $0.44, the company's quarterly revenue told a different story. Sales came in at $2.98 billion, a figure that not only missed analyst projections but also represented a 6.8% decline compared to the same period last year.

A major point of concern for market researchers was a substantial $968 million goodwill impairment charge within the refrigerated and frozen products segment. This accounting adjustment, which does not impact cash flow, was the primary driver behind a reported quarterly net loss exceeding $663 million. Analysts interpret this write-down as an indication of persistent difficulties in maintaining brand value amidst a tough operating climate.

Should investors sell immediately? Or is it worth buying Conagra Brands?

Wall Street's Response: A Series of Downgrades

The reaction from investment banks was swift. Deutsche Bank adjusted its price objective downward to $18 from $19. Similarly, BofA Securities reduced its target to $17. Other firms, including RBC Capital, Evercore ISI, and TD Cowen, also lowered their expectations in unison.

The collective rationale behind these moves centers on falling organic sales, which analysts attribute entirely to reduced volume, and the continued pressure on the frozen and convenience food categories. Despite these headwinds, the leadership team under CEO Sean Connolly has reaffirmed its full-year guidance. The company continues to project fiscal 2026 adjusted earnings per share in the range of $1.70 to $1.85.

Connolly emphasized an anticipated return to organic growth in the latter half of the year, citing upcoming product innovations and increased marketing investments as key catalysts. The company's next quarterly report, scheduled for April 2026, will be a critical test of whether this projected recovery materializes and can alleviate the current skepticism prevailing among market strategists. The stock remains under pressure as investors weigh these competing narratives.