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ConAgra Foods Cut to “Neutral” at Goldman Sachs (CAG)

Packaged foods maker ConAgra Foods, Inc. ( CAG ) on Thursday saw its rating and price target lowered by analysts at Goldman Sachs.

The firm said it downgraded CAG from "Buy" to "Neutral" and cut its price target from $31 to $27. That new target suggests a smaller 15% upside to the stock's Wednesday closing price of $23.45.

Goldman said it made the move "to reflect a lower probability of sizeable near-term accretion through capital allocation" in the midst of several failed bids for rival foodmaker Ralcorp ( RAH ). The analyst said it prefers J. M. Smucker ( SJM ) in the food space, which it upgraded today .

ConAgra shares fell 18 cents, or -0.8%, in premarket trading Thursday.

The Bottom Line

Shares of ConAgra Foods ( CAG ) have a 3.92% dividend yield, based on last night's closing stock price of $23.45. The stock has technical support in the $21-$22 price area. If the shares can firm up, we see overhead resistance around the $26-$27 price levels.

ConAgra Foods, Inc. ( CAG ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

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 Nasdaq, Inc.

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

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