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Investing.com - Barclays (LON:BARC) lowered its price target on General Mills (NYSE:GIS) to $54.00 from $60.00 on Thursday, while maintaining an Equalweight rating on the food company’s stock. The stock currently trades at $50.68, near its 52-week low of $50.66, with a modest P/E ratio of 11.17.
The research firm cited General Mills’ plans for a national fresh pet food launch under its Blue Buffalo brand. This expansion follows a test of fresh pet food products conducted approximately two years ago, according to Barclays.
General Mills will support the national launch with multi-year investments aimed at driving trial and awareness among consumers. The company is utilizing learnings from its previous fresh pet food test to inform this broader rollout strategy.
Barclays noted that General Mills sees "an attractive financial model at scale" for the fresh pet food initiative. The Blue Buffalo brand, which General Mills acquired in 2018, has been a key component of the company’s pet segment.
Despite the price target reduction, Barclays maintained its Equalweight rating on General Mills stock, suggesting a neutral outlook on the company’s near-term performance as it undertakes this expansion in the pet food category.
In other recent news, General Mills reported its fiscal fourth-quarter 2025 earnings, achieving an earnings per share (EPS) of $0.74, which exceeded analyst expectations of $0.71. Revenue was in line with forecasts at $4.6 billion. Despite the positive earnings surprise, the stock experienced a decline due to concerns about strategic reinvestments. RBC Capital upgraded General Mills from Sector Perform to Outperform, citing confidence in the company’s fiscal year 2026 earnings per share guidance. However, RBC lowered its price target for the company from $67 to $63, indicating a belief in potential future growth. Meanwhile, Jefferies maintained a Hold rating on the stock but reduced its price target from $53 to $51, acknowledging the company’s efforts to improve demand and competitiveness. BofA Securities also adjusted its price target on General Mills, lowering it from $63 to $61, while maintaining a Buy rating, highlighting concerns about execution risks in the company’s fiscal year 2026 outlook. These developments reflect the ongoing assessment of General Mills’ ability to meet financial projections amid challenges in the packaged food sector.
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