JP Morgan Gets Bullish on ConAgra, Tepid on General Mills (CAG, GIS)

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Analysts at JP Morgan on Tuesday offered some diverging commentary on packaged foods maker ConAgra Foods, Inc. ( CAG ) and General Mills, Inc. ( GIS ).

The firm upgraded CAG from "Neutral" to "Overweight" on a valuation call. JP Morgan has a $29 price target set on ConAgra, suggesting a 15% upside to the stock's Friday closing price of $25.11.

Meanwhile, the analyst downgraded GIS from "Overweight" to "Neutral" with a $40 price target, which implies zero upside to the stock's Friday closing price of $39.33. JP Morgan noted it expects the company's yogurt problems to take longer to fix than originally anticipated.

ConAgra shares were mostly flat in premarket trading Tuesday, while General Mills shares fell 33 cents, or -0.8%.

The Bottom Line
Shares of ConAgra Foods ( CAG ) have a 3.82% dividend yield, based on Friday's closing stock price of $25.11. The stock has technical support in the $23-$24 price area. If the shares can firm up, we see overhead resistance around the $27-$28 price levels. Shares of General Mills ( GIS ) have a 3.36% dividend yield, based on Friday's closing stock price of $39.33. The stock has technical support in the $37 price area. If the stock can firm up, we see overhead resistance around the all-time highs of $41-$42 a share.

ConAgra Foods, Inc. ( CAG ) and General Mills, Inc. ( GIS ) are both currently rated "Neutral" by Dividend.com.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: CAG , GIS

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