The price target reduction follows ConAgra's announcement that it would prioritize volume growth in fiscal year 2026, requiring significant reinvestment that has led to earnings guidance approximately 23% below consensus estimates and EBIT margins 265 basis points below expectations. Despite these challenges, the company maintains a substantial 7.18% dividend yield and trades at an attractive P/E ratio of 8.49. Bernstein noted that while some challenges stem from external factors including tariffs, protein and labor inflation, stranded costs from recent divestments, supply chain issues in frozen chicken and vegetables, rebased incentive compensation, and adverse foreign exchange rates. The analyst firm also pointed to shifting consumer demand curves that may require ConAgra to rebuild trust among lapsed consumers, particularly as media coverage around food additives increases and consumer awareness of heavily processed foods grows.