Morgan Stanley Reiterates Equal-Weight on ConAgra Foods

Morgan Stanley reiterated its Equal-weight rating on ConAgra Foods (NYSE: CAG) ahead of the company's quarterly earnings report, which is due on June 23rd.

In a research report published today, Morgan Stanley commented on its forecasts, "We forecast: i) Net sales growth of 0.1%, comprised of 1.9% Consumer Foods and -3.4% Commercial Foods sales growth; ii) A 23.6% gross margin, 50 bps of degradation year-over-year as pricing action lags commodity inflation; iii) A 10.9% operating margin (13.1% ex-corporate expenses), ~70 bps higher year-over-year; iv) $38 million in interest expense and a 33% tax rate, both in line with full year guidance."

At the moment, Morgan Stanley has a price target of $22 placed on the company's stock. On Thursday, ConAgra added 0.86% to its value to close the day at $24.55.