Citi Maintains Buy Rating On CAG

Citi is maintaining its Buy rating on ConAgra Foods Inc (NYSE: CAG).

“While ConAgra is producing very good innovation and growth in frozen foods (its largest category), the overall portfolio is being stymied by high inflation and sluggish sales trends, which are limiting FY11 EPS growth,” Citi writes.

“Thus even though CAG beat F3Q11 EPS expectations by 3c, management maintained its full year guidance of +1% to +3% EPS growth, but with cuts in advertising and compensation spending.”

ConAgra Foods closed Thursday at $23.40.