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Investing.com - UBS lowered its price target on General Mills (NYSE:GIS) to $49.00 from $52.00 on Thursday, while maintaining a Sell rating on the stock following the company’s fourth-quarter earnings report. According to InvestingPro data, analyst targets for GIS currently range from $48.00 to $72.11, with the stock trading at an attractive P/E ratio of 12.4x.
General Mills shares fell 5% Thursday after the company’s fiscal 2026 guidance came in approximately 5% below Wall Street’s expectations on the bottom line. The midpoint of the company’s earnings per share outlook represents a double-digit percentage decline year-over-year. The stock is now trading near its 52-week low, with a notable dividend yield of 4.74%. InvestingPro analysis suggests the stock is currently in oversold territory, with additional insights available in the comprehensive Pro Research Report.
UBS noted that while investors were prepared for challenging guidance, the magnitude of the projected earnings decline was worse than most anticipated. The firm’s analysis questioned whether General Mills’ initial outlook contains appropriate flexibility and conservatism to be considered de-risked.
The investment bank acknowledged that General Mills is taking a prudent approach to guidance across several key variables. However, UBS expressed concerns about the company’s ability to achieve its projected top-line improvement.
UBS specifically cited limited visibility into sales trends amid a challenging consumer environment as a key factor in its cautious stance on General Mills’ outlook and subsequent price target reduction.
In other recent news, General Mills has faced several adjustments in analyst price targets following its latest financial developments. Stifel reported a 3% decline in organic sales for the fourth quarter, with earnings per share at $0.74, a 27% decrease on a constant currency basis, but still surpassing their estimate by $0.05. The company has projected a 10% to 15% decline in earnings per share for fiscal year 2026, attributed to increased reinvestment efforts. Bernstein and Evercore ISI both lowered their price targets for General Mills, citing ongoing headwinds and updated financial analyses, with Bernstein highlighting regulatory challenges and Evercore noting the impact of the Yoplait sale. Mizuho (NYSE:MFG) maintained a $60 price target, acknowledging modest earnings per share upside and market share improvements in North America. Barclays (LON:BARC) also reduced its price target to $54, in line with General Mills’ plans for a national launch of fresh pet food under the Blue Buffalo brand, which will be supported by multi-year investments. Despite these changes, General Mills is focusing on reinvestment to drive growth and improve volume performance in key categories.
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