J.P. Morgan Raises CAG Target From $23 To $26

J.P. Morgan is introducing a new ConAgra Foods, Inc.

price target of $26 for year-end 2011, up from $23. “We base our assumption on a 13x multiple – representing a 7% discount to the group – on our estimated $2.01 in 2012 calendar earnings,” J.P. Morgan writes. “We add, however, that CAG's thrifty current valuation (12.1x) on calendar 2011 earnings and its 4.1% yield may provide upside to our target, especially if CAG delivers on its second half goals.” ConAgra Foods closed at $22.40.