General Mills stock rating reiterated by Bernstein at Market Perform

Investing.com - Bernstein SocGen Group has reiterated its Market Perform rating and $54.00 price target on General Mills (NYSE:GIS) following the company’s investor day. The stock, currently trading near its 52-week low of $47.71, maintains an attractive P/E ratio of 9.2x, according to InvestingPro data.

The firm noted that while General Mills showcased impressive advancements in digital technology, concerns remain about when the North America Retail segment might experience improved category growth trends.

Bernstein observed that General Mills is making slow but steady progress on market share and volume trends, even as it lowers pricing to reach specific price cliffs and optimize price gaps relative to private label products following the 2021-2023 pricing supercycle.

Management currently expects to achieve flattish organic sales growth this year, requiring sequential improvement throughout the year despite headwinds including ongoing value-seeking consumer behavior and concerns about heavily-processed foods. InvestingPro analysis reveals 12 additional key insights about General Mills’ performance and outlook, available in the comprehensive Pro Research Report.

The research firm suggested that while current pressures may peak in early 2026, and investor interest in the sector appears to be increasing, fundamentals could deteriorate further before true stabilization occurs. Based on InvestingPro’s Fair Value analysis, General Mills currently appears slightly undervalued, suggesting potential upside for patient investors.

In other recent news, General Mills reported better-than-expected first-quarter earnings, with earnings per share reaching $0.86, surpassing analyst estimates by $0.05. Despite this earnings beat, the company maintained its fiscal year 2026 guidance. UBS responded by lowering its price target for General Mills to $47, citing growth concerns, while maintaining a Sell rating. Meanwhile, TD Cowen maintained its Hold rating and $48 price target after the results. Additionally, General Mills announced a multi-year organizational initiative to enhance its supply chain competitiveness, which includes the closure of several manufacturing facilities. The initiative is expected to result in approximately $82 million in restructuring charges, with $17 million to be paid in cash. Furthermore, the company declared a quarterly dividend of $0.61 per share, payable on November 3, 2025. At its annual meeting, General Mills shareholders approved all board nominees and executive pay. These developments reflect ongoing strategic adjustments and financial assessments within the company.

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