UPDATE: Jefferies Initiates ConAgra Foods at Hold

Jefferies is out with its report today on ConAgra Foods (NYSE: CAG), initiating CAG at Hold.

In its report, Jefferies writes, "We are initiating coverage of ConAgra with a Hold rating and $25 PT. After the failure to strike a deal for Ralcorp, we prefer to stay on the sidelines until we get a better idea about management's next steps. That aside, we consider CAG's structurally disadvantaged categories and relative lack of int'l growth opportunities an obstacle to outperformance, even though the long-term strategy appears to be designed to address these issues."

Shares of CAG closed Wednesday at $23.03, up 0.17% from Tuesday's close.