Food products maker ConAgra Foods, Inc. ( CAG ) on Monday caught a big upgrade from analysts at Goldman Sachs.
The firm said it boosted its rating on CAG from "Neutral" to "Buy" and lifted its price target from $28 to $31. That new target suggests a 23% upside to the stock's Friday closing price of $25.20.
Goldman noted that the risk/reward for CAG at current levels is compelling, and also commended the company's strong cash position. Additionally, the recent hostile offer for Ralcorp illustrates a renewed willingness to deploy its capital to grow its business.
ConAgra shares were mostly flat in premarket trading Monday.
The Bottom Line
Shares of Conagra Foods ( CAG ) have a 3.65% dividend yield, based on Friday's closing stock price of $25.20. 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.
ConAgra Foods, Inc. ( CAG ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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