Shares are soaring 9.28% to $42.75 in Friday's morning trading session.
This comes after the packaged foods giant announced yesterday that activist investor Jana Partners had taken a 7.2% stake in the company.
Jana Partners also stated its desire to work with ConAgra Foods' management team to improve its business performance and possibly nominate three representatives to the board, according to the analyst note.
"Jana has a good track record for creating value for shareholders by pushing for change at underperforming companies and quite often in a constructive fashion," analysts said.
ConAgra Foods' price target was raised to reflect the likelihood that it will respond to Jana by accelerating its plans to enhance its business value, the firm noted.
Insight from TheStreet Rating's Team:
Conagra (CAG) -- gets hit with the activist stick. Jana Partners wants to do what current management can't do, which is find a way to get out of the jam caused by the awful purchase of Ralcorp.
All I could think of when this came over the tape is whether Conagra will jump the queue that Diageo's (DEO) supposed to be a part of Jana has to hope so because I don't know how much more can be done with CAG given how old and, frankly, second rate many of its brands really are.