UPDATE: KeyBanc Initiates Buy, $30 PT on ConAgra Foods on Growth Outlook

KeyBanc initiated its coverage on ConAgra Foods

with a Buy rating and a price target of $30. KeyBanc noted, "Entering the next phase, we believe the Company is well positioned to morph its portfolio to fit a faster growth profile – CAG's long-term EPS growth guidance of 7% (range of 6-8%) is slightly below its peer group average of 8%. Specifically, we expect the Company's exposure to the faster growing Private Label and International markets to increase meaningfully over the next 3-5 years. If the Company is successful in executing its strategy, we believe the valuation gap relative to its peers will narrow. Furthermore, as a result of the divestitures of several commodity/trading type businesses, we believe the Company's portfolio is more stable than before and should result in more stable/predictable earnings and cash flow." ConAgra Foods closed at $23.81 on Tuesday.