Price targets for Campbell's (CPB), General Mills (GIS), and Conagra Brands (CAG) were cut Friday by Morgan Stanley (MS) due to likely margin pressure from higher inflation.

In a note, Morgan Stanley said it expects "negative revisions" in coming weeks from "ongoing topline weakness and incremental margin pressure from higher input costs post the Iran conflict."

The firm said its updated 2027 EPS estimates are now mostly below consensus for Conagra Brands, followed by General Mills and Campbell's, with the least revision risk likely for J. M. Smucker. (SJM).

"The bar is low, but we don't think guidance cuts will be a clearing event," Morgan Stanley said, adding that "higher costs could linger beyond FY27."

Morgan Stanley cut its price target for Campbell's to $21 from $23; for Conagra to $13 from $15; and General Mills to $32 from $37. The firm raised its price target for J. M. Smucker to $106 from $104.