TD Cowen Raises General Mills (NYSE:GIS) Price Target to $33.00

Key Points

• TD Cowen raised General Mills’ price target from $32 to $33 while maintaining a “hold” rating; the target implies 7.64% downside from the prior close.
• Analyst sentiment remains cautious, with 4 Buy, 10 Hold, and 6 Sell ratings and an average rating of “Reduce.” The consensus price target is $36.53.
• General Mills beat quarterly expectations with $0.75 adjusted EPS and $4.39 billion in revenue, but sales declined 2.8% year over year and rising input-cost inflation continues to pressure the outlook.

General Mills (NYSE:GIS - Get Free Report) had its price target boosted by TD Cowen from $32.00 to $33.00 in a note issued to investors on Thursday, Benzinga reports. The brokerage presently has a "hold" rating on the stock. TD Cowen's price target would suggest a potential downside of 7.64% from the company's previous close.

Other research analysts have also recently issued research reports about the company. UBS Group reiterated a "sell" rating on shares of General Mills in a research report on Wednesday, September 16th. Royal Bank Of Canada restated an "outperform" rating and set a $45.00 price objective on shares of General Mills in a research note on Monday. BNP Paribas Exane raised their price target on General Mills from $37.00 to $38.00 and gave the stock a "neutral" rating in a research report on Thursday, July 2nd. Wells Fargo & Company upped their price target on shares of General Mills from $30.00 to $33.00 and gave the stock an "underweight" rating in a report on Thursday, July 2nd. Finally, Jefferies Financial Group set a $35.00 target price on General Mills in a research note on Thursday, September 10th. Four analysts have rated the stock with a Buy rating, ten have given a Hold rating and six have assigned a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Reduce" and an average price target of $36.53.

General Mills Stock Up 0.8%

GIS stock opened at $35.73 on Thursday. The company has a market cap of $19.10 billion, a price-to-earnings ratio of -198.49, a P/E/G ratio of 1.93 and a beta of -0.01. General Mills has a twelve month low of $31.75 and a twelve month high of $51.33. The business has a 50 day moving average price of $37.82 and a two-hundred day moving average price of $36.40. The company has a quick ratio of 0.40, a current ratio of 0.68 and a debt-to-equity ratio of 1.68.

General Mills (NYSE:GIS - Get Free Report) last posted its quarterly earnings results on Wednesday, September 23rd. The company reported $0.75 EPS for the quarter, topping analysts' consensus estimates of $0.72 by $0.03. General Mills had a positive return on equity of 21.37% and a negative net margin of 0.48%.The business had revenue of $4.39 billion during the quarter, compared to analysts' expectations of $4.35 billion. During the same quarter last year, the company posted $0.86 earnings per share. General Mills's quarterly revenue was down 2.8% on a year-over-year basis. Analysts anticipate that General Mills will post 3.06 EPS for the current fiscal year.

Institutional Trading of General Mills

Institutional investors have recently added to or reduced their stakes in the stock. Talon Private Wealth LLC bought a new stake in shares of General Mills during the 2nd quarter valued at about $211,000. The Manufacturers Life Insurance Company grew its stake in General Mills by 2.1% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 299,001 shares of the company's stock worth $10,405,000 after buying an additional 6,098 shares in the last quarter. Sequoia Financial Advisors LLC increased its holdings in shares of General Mills by 38.7% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 36,290 shares of the company's stock worth $1,263,000 after buying an additional 10,132 shares during the last quarter. Tidal Investments LLC raised its position in shares of General Mills by 52.6% during the 2nd quarter. Tidal Investments LLC now owns 127,535 shares of the company's stock valued at $4,438,000 after buying an additional 43,958 shares in the last quarter. Finally, MCF Advisors LLC grew its position in General Mills by 7.8% in the second quarter. MCF Advisors LLC now owns 3,812 shares of the company's stock worth $133,000 after acquiring an additional 277 shares in the last quarter. Hedge funds and other institutional investors own 75.71% of the company's stock.

Key General Mills News

Here are the key news stories impacting General Mills this week:

• Positive Sentiment: Q1 results exceeded expectations. General Mills reported adjusted earnings of $0.75 per share, above the $0.72 consensus estimate, while revenue of $4.39 billion topped expectations of $4.35 billion. Pricing and product mix helped offset lower volumes and higher costs. General Mills Q1 Earnings Beat Estimates on Pricing and Mix Benefits
• Positive Sentiment: Cost savings and international operations provided support. Management is targeting approximately $750 million in fiscal 2027 cost savings, and international profit reportedly increased 14%, suggesting parts of the turnaround are gaining traction. General Mills Reaffirms Full-Year Guidance as International Profit Jumps 14%
• Neutral Sentiment: Full-year guidance was reaffirmed. General Mills maintained its fiscal 2027 outlook, including organic sales ranging from a 1.5% decline to 0.5% growth and adjusted EPS of $3.00 to $3.20. The lack of a downward revision offers some stability, but the range implies limited near-term growth. General Mills Reports Fiscal 2027 First-quarter Results and Reaffirms Full-year Outlook
• Negative Sentiment: Underlying sales and profitability remain weak. Revenue fell 2.8% year over year, North America Retail sales declined roughly 7%, and organic sales were flat. Reported net income fell sharply to $397 million from $1.2 billion in the prior-year period, although the comparison was distorted by a prior gain from the U.S. yogurt divestiture. General Mills Beats First-quarter Sales Estimates
• Negative Sentiment: Inflation is expected to intensify. Management warned input-cost inflation could approach 6% by the fourth quarter, putting additional pressure on margins and potentially requiring further price increases. Investors therefore viewed the earnings beat as less durable, explaining the negative stock reaction. General Mills Warns Inflation Could Hit 6%

About General Mills

General Mills, Inc is a global food company that manufactures and markets branded consumer food products. Its portfolio includes cereals, snacks, refrigerated and shelf-stable meals, baking products, yogurt, and pet food.

The company's brands include Cheerios, Betty Crocker, Pillsbury, Nature Valley, Old El Paso, Yoplait, Blue Buffalo, and Häagen-Dazs in markets where it owns or licenses the brand. General Mills sells its products through grocery stores, mass merchants, convenience stores, e-commerce channels, restaurants, and other foodservice providers.

General Mills traces its history to the Minneapolis Milling Company, founded in 1856, and adopted the General Mills name in 1928.

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