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On Tuesday, Barclays (LON:BARC) made an adjustment to General Mills ’ (NYSE:GIS) stock outlook, reducing the price target from $68.00 to $65.00 while keeping an Equalweight rating on the shares. Currently trading at $60.94, the stock sits below the analysts’ consensus range of $58-$74. The decision by Barclays analysts comes as they revise their financial model for the company in anticipation of its third-quarter fiscal year 2025 earnings report, scheduled for March 19. According to InvestingPro data, 14 analysts have recently revised their earnings expectations downward for the upcoming period.
Analysts at Barclays have taken into account the latest tracked measured channel trends, which have shown ongoing challenges. These trends have been a critical factor in reassessing the company’s stock value. Despite these challenges, InvestingPro analysis indicates the company maintains a GOOD overall financial health score, with particularly strong profitability metrics. Additionally, remarks made by General Mills at the recent Consumer Analyst Group of New York (CAGNY) conference were also considered in the revised price target.
The adjustment also reflects recent strategic moves by General Mills, including the completion of the Whitebridge Pet Brands acquisition and the divestiture of its Canadian Yogurt business. These corporate actions are significant as they reshape the company’s portfolio and potentially impact its financial performance.
The updated model aims to provide a more accurate representation of General Mills’ current business environment and future prospects. Barclays’ maintenance of an Equalweight rating indicates that they view the stock as adequately valued at the time of the analysis relative to the market or its peers.
Investors and market watchers now look forward to General Mills’ upcoming earnings release, which will offer further insights into the company’s financial health and the impact of its recent business activities. The revised price target by Barclays will likely be one of the factors considered by the market as it evaluates General Mills’ stock performance.
In other recent news, General Mills has been the focus of several analyst assessments and strategic developments. RBC Capital Markets maintained its Sector Perform rating on General Mills with a $70 price target, indicating a challenging third quarter due to inventory issues and broader economic instability. RBC revised its organic growth estimates downward to -3.1% and aligned its earnings per share estimate at $0.96, suggesting potential adjustments to the company’s fiscal guidance. Similarly, Citi reduced its price target from $60 to $58, citing concerns over sales growth and shipment timing issues in key segments like North America Retail and Pet. Analysts at Jefferies raised their price target to $62 while maintaining a Hold rating, noting potential guidance revisions due to declining sales trends in ready-to-eat cereals and snack bars.
Additionally, Health and Human Services Secretary Robert F. Kennedy Jr. has urged General Mills and other food companies to eliminate artificial dyes from their products, signaling a push for improved health standards. Meanwhile, General Mills announced the launch of new ramen flavors inspired by its Old El Paso and Totino’s brands, available at Walmart (NYSE:WMT) starting in April. This product expansion aims to tap into the growing popularity of instant ramen, aligning with consumer interest in new flavor experiences. These developments reflect General Mills’ ongoing efforts to navigate market challenges and innovate within the competitive food industry landscape.
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