Analyst Day Expectations For Jefferies Top Pick ConAgra Foods

ConAgra Foods Inc (NYSE: CAG) is scheduled to host an Analyst Day on Thursday, which will place an emphasis on the proposed split of its Lamb Weston division.

Ahead of the company's presentation, Akshay Jagdale of Jefferies prepared a cheat-sheet of what to expect.

According to Jagdale, management is expected to present its long-term growth profile for both ConAgra Foods' core business, CAG Brands, and its Lamb Weston segment.

CAG Brands is expected to realize double-digit earnings growth and Lamb Weston will produce high-single digits to low-double-digit earnings growth over the next few years.

These targets are considered to be "conservative" and the analyst's proprietary segmentation analysis, asset sale valuation framework, proxy review & stand-alone models "differentiate our view relative to the Street."

Jagdale suggested that the company's underlying assets are undervalued and there is a potential to unlock around $14 billion in incremental value. As such, the stock is one of the cheapest within the analyst's coverage universe.

The analyst's Buy rating and $56 price target implies an EV/EBITDA multiple of 12.7x his fiscal 2018 EBITDA estimate. However, this valuation only gives "partial credit" for the company's value-unlock opportunity and a $68 price target gives full credit for the entire opportunity.