Goldman Sachs analyst Leah Jordan initiated coverage of the packaged food sector. The analyst writes that growth in the sector has slowed following the Covid demand surge and inflation, but some companies are undervalued near historic lows. The analyst expects food-at-home spending to grow at a low-single-digit rate, supported by both volume and pricing due to strong consumer cash flow. Jordan initiated coverage on ConAgra Brands, Inc. (NYSE:CAG) with a Buy rating and price target of $36. The analyst views CAG favorably due to its strong frozen and snack portfolio aligned with convenience trends, offering better-than-expected results and the highest free cash flow yield in the coverage. The company’s transformation, including the Pinnacle Foods acquisition and process overhaul, has been underappreciated by investors, particularly given the Covid-related market shifts, writes the analyst. For FY25-27, the analyst estimates EPS of $2.67, $2.78, and $2.89 vs. the consensus (FactSet) of $2.61, $2.70, and $2.82, respectively, reflecting a more optimistic outlook on volume and mix trends. Related: ConAgra Falls Short On Q4 Revenue Amid Unfavorable Price Mix The analyst initiated coverage on General Mills, Inc. (NYSE:GIS), with a Buy rating and price target of $76. GIS’ diverse portfolio aligns with current trends, has less private label risk than feared, and demonstrates stronger margins compared to peers, writes the analyst. The analyst forecasts stable gross margins for GIS, with gradual improvement supported by moderating input cost inflation and ongoing productivity gains. For FY25-27, Jordan projects EPS of $4.55, ...