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Investing.com - Jefferies has lowered its price target on General Mills (NYSE:GIS) to $50.00 from $51.00 while maintaining a Hold rating on the stock. The company, currently trading at a P/E of 12.2 and offering a 4.82% dividend yield, has maintained dividend payments for 55 consecutive years. InvestingPro analysis suggests the stock is currently undervalued.
The firm’s analysis of U.S. tracked channel data indicates General Mills retail sales and volumes showed slight improvement in the 12-week period ending August 9 compared to the 12-week period ending May 17.
Jefferies noted this improvement appears somewhat misleading, as it largely stems from a significantly better 4-week period ending June 14, while the two subsequent periods showed trends consistent with earlier performance this year.
The research firm identified some areas of demand improvement and share gains, particularly in the cereal and dough categories, but indicated these positive signs are not yet widespread across the company’s product portfolio.
Jefferies stated it has "yet to see broad sustained improvements materialize" for General Mills, supporting its decision to maintain a Hold rating on the stock.
In other recent news, General Mills has announced a $54 million investment to expand its James Ford Bell Technical Center in Golden Valley, Minnesota. This expansion will add a new 35,000-square-foot pilot plant wing, increasing the company’s research and development facilities by over 20 percent. In addition to this development, General Mills has completed the sale of its U.S. yogurt business to Lactalis, which includes brands like Yoplait and Go-Gurt, as well as manufacturing facilities in Tennessee and Michigan.
Analysts have also weighed in on the company’s performance. Piper Sandler has reiterated an Overweight rating with a $60 price target, highlighting General Mills’ focus on innovation as a key growth strategy. On the other hand, JPMorgan has downgraded the stock to Underweight, citing concerns about the company’s earnings outlook and guidance track record. Stifel has maintained its Buy rating with a $56 price target after discussions with General Mills’ leadership. These developments reflect a mix of strategic moves and varied analyst perspectives on the company’s future.
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