The Dividend Daily

Citigroup and Credit Suisse have both increased their price targets for food company, ConAgra Foods, Inc.(CAG) Wednesday.

Citigroup reported that they have given the company a price target of $34, with a “Buy” rating. This price target suggests a 12.8% increase over the stock’s current price of $29.64. The firm noted that the increased PT is a result of the company’s acquisition of Ralcorp Holdings, Inc.(RAH), which occurred on Tuesday.

Additionally, CAG’s price target was also increased at Credit Suisse. The firm expects to see the stock’s price reach $32. This price target suggests a 7% increase over the stock’s current price. Analysts expect the company’s recent acquisition to increase earnings.

ConAgra shares were mostly flat during premarket trading Wednesday. The stock is up 12.23% YTD.

The Bottom Line
Shares of ConAgra Foods (CAG) have a 3.3%7 dividend yield, based on last night’s closing stock price of $29.63. The stock has technical support in the $26 price area. If the shares can firm up, we see overhead resistance around the $30-$32.50 price levels.

ConAgra Foods, Inc.(CAG) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.