ConAgra Foods (CAG: sentiment, chart, options) has been pounded by analysts today after firm slashed its earnings forecast for its fiscal first quarter. Late yesterday, ConAgra said that profits will come in slightly below its June forecast of 26 cents to 28 cents per share, and markedly lower than the 29 cents per share predicted by Wall Street. The firm is feeling the pinch of rising ingredient costs, along with underperformance in its consumer-foods segment.

In reaction to the news, Lehman Brothers cut its price target on CAG from $24 to $22, and reiterated its "equal weight" rating. J.P. Morgan slashed its opinion on the stock from "overweight" to "neutral," while Merrill Lynch downgraded the shares by a few notches from "buy" to "underperform." Elsewhere, Soleil initiated coverage of CAG with a "hold" opinion.

Merrill Lynch also slashed its price target from $24 to $20, and explained its dramatic shift in coverage by calling the profit warning "the last straw... [CAG's lowered forecast] sapped the remainder of our confidence in the company's execution ability and intermediate-term earnings potential, and demonstrates management's continued lack of visibility into ConAgra's disparate operations."

At last check, CAG was down 7%. The stock's decline marks the unceremonious end to a brief reign atop its 10-week moving average, and extends its year-to-date drop of about 10%.