Deutsche Bank Reiterates Hold, $25 Target on ConAgra

Deutsche Bank maintains its Hold rating and $25 target price on ConAgra Foods (NYSE: CAG) ahead of the earnings preview for F2Q12.

Deutsche Bank says, “We believe CEO Rodkin is once again pursuing a logical strategy to adapt ConAgra for the future. A low relative and absolute valuation, solid balance sheet and 4% div.yield all give support. But we still see downside earnings risk and the obvious lack of visibility on M&A keeps our HOLD opinion unchanged. ...ConAgra will report F2Q12 (end Nov) EPS on Tues., Dec 20th. We expect opr EPS of $0.41 (vs. $0.43 consensus) on +8% sales growth and -7% EBIT decline.”

CAG closed at $25.35 per share on Tuesday.