UPDATE: Goldman Sachs Initiates ConAgra at Neutral (CAG)

Goldman Sachs is out with its report today on ConAgra (NYSE: CAG), initiating CAG at Neutral.

In a note to clients, Goldman Sachs writes, "We are launching coverage of CAG with a Neutral rating. We view CAG as the best way to trade inflation cycles in Food and believe that the current cycle will continue to dictate the firm's fundamental trajectory through FY2013. Downside inflation risk appears to have passed, but we believe it is too early to position for the late-cycle upside opportunity. CAG still has an uphill battle to achieve price growth without compromising volume. If it succeeds, then consensus should prove achievable in the near term and beatable in the medium term. But upside to consensus appears over a year away, based on our estimates, and much can transpire in a year."

Shares of CAG closed Wednesday at $23.85, up 0.59% from Tuesday's close.