Morgan Stanley picks up coverage again on Conagra Brands (CAG -1%) with an Equal-weight rating and price target of $31 (11X the C021 EV/EBITDA estimate).
"We are constructive on CAG given its advantaged category exposure, innovation pipeline, and PF synergy potential. However, risk-reward appears balanced as expectations have moved higher and PF turnaround risk remains," reads the MS summary on ConAgra.
Analyst Pamela Kaufman notes that while Pinnacle Foods is a good strategic fit for Conagra, integration and topline challenges enhance operational complexity and reduce CAG's financial visibility.
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