UPDATE: Bank Of America Downgrades ConAgra Foods On Mixed Factors

In a report published Thursday, Bank of America analyst Bryan D. Spillane downgraded the rating on ConAgra Foods (NYSE: CAG) from Buy to Underperform, and lowered the price target from $34.00 to $30.00.

In the report, Bank of America noted, “We are downgrading ConAgra Foods (CAG) from Buy to Underperform. While we continue to believe that there is potential for the company to create an advantaged Private Brands business model by delivering higher quality products at a lower cost, it is clear given yesterday's announcement that it will take longer for the company to realize its full potential. Valuation is attractive but with muted earnings growth, relatively high debt levels and no dividend growth in the near term we expect the stock to underperform its peers over the next 12 months.”

ConAgra Foods closed on Wednesday at $30.47.