After ConAgra sold its Spicetec Flavors & Seasonings for about $340 million to Givaudan last week, Barron's said analysts speculate it might consider sales of other brands including Lamb Weston, its commercial frozen potato business.
Without Lamb Weston, the Omaha-based company would remain the second biggest U.S. frozen entree producer and top maker of shelf-stable meals with $9 billion in annual revenue, the paper said.
Analysts expect ConAgra's revenue to fall to $11.7 billion in fiscal 2016 following the sale of its private-label food business to Treehouse Foods for $2.7 billion. This compared with $15.83 billion the prior fiscal year.
ConAgra CEO Sean Connolly, who took over the post last April, might be preparing ConAgra for sale, Barron's said. Connolly aims to cut $300 million in annual costs, which make up of $200 million in selling, general and administrative expenses and $100 million in ineffective trade promotions, the business weekly said.
ConAgra carries a hefty price tag. Its current market capitalization was nearly $19.8 billion on Friday when its shares closed down 0.4 percent at $45.29.
"But with Lamb Weston gone and his new strategy kicking in, the food giant might be a tasty target," Barron's said.
(Reporting by Richard Leong; Editing by Nick Zieminski)