Conagra Brands Inc (NYSE:CAG), the packaged food titan, saw shares advance Monday as analysts at Swiss broker UBS upgraded the shares.
Analysts at the bank went to buy from neutral on the stock due to its long-term growth potential and that the current weakness in the shares was overdone.
Its acquisition of Pinnacle Foods, which should close by the end of October, is also a trigger for growth, they suggested.
The price target was upped to $40 from $38.
Last month, the group posted a slight miss in earnings per share (EPS) and revenue for the fiscal first quarter of 2019, sending shares over 5% lower.,
First-quarter revenue came in 1.7% higher than last year's $1.8 billion, but below the consensus expectation of $1.85 billion.
Earnings per share were at $0.47, which was in line with the company's guidance and up from last year's $0.46, but the number was below the expected EPS of $0.49
Shares added 3.25% on Monday to $34.68 in New York.