US stock futures inch lower after Wall St marks fresh records on tech gains
Investing.com - UBS maintained its Sell rating and $49.00 price target on General Mills (NYSE:GIS) in a research note published Tuesday. According to InvestingPro data, the stock currently trades at $50.34, with a P/E ratio of 12.22, suggesting relatively modest valuations compared to peers.
The investment firm expressed concerns about General Mills’ valuation compared to peers in the center store category that are delivering similar top-line growth rates. Recent data shows the company’s revenue declined by 1.87% over the last twelve months, while maintaining a Fair financial health score according to InvestingPro’s comprehensive analysis.
UBS remains skeptical about the company’s ability to achieve its fiscal year 2026 guidance, particularly regarding revenue growth, given what it describes as a "challenging demand backdrop" in the consumer packaged goods sector.
Despite these concerns, UBS does not expect the upcoming earnings report to significantly impact the stock price, noting that General Mills shares have already underperformed the Consumer Staples Select Sector SPDR Fund (XLP) since the company’s fourth-quarter results in June. The stock is currently trading near its 52-week low of $48.29, though it maintains a notable 4.87% dividend yield and has maintained dividend payments for 55 consecutive years.
The firm indicated that until there is improved visibility on how General Mills will achieve the top-line growth needed to meet its FY26 outlook, it "struggles to see a catalyst" that would drive positive momentum for the stock. Discover more insights and 8 additional ProTips about General Mills in the comprehensive research report available on InvestingPro.
In other recent news, General Mills announced a significant $54 million investment to expand its James Ford Bell Technical Center in Golden Valley, Minnesota. This expansion will add a 35,000-square-foot pilot plant wing to its research and development facilities, marking the largest investment in the center since its inception in 1960. Meanwhile, Jefferies has lowered its price target for General Mills to $50, maintaining a Hold rating, based on slight improvements in retail sales and volumes over a recent 12-week period. In contrast, Piper Sandler has maintained an Overweight rating with a $60 price target, emphasizing the company’s focus on innovation as a strategy for growth, particularly in fiscal year 2026.
However, JPMorgan has downgraded General Mills to Underweight, reducing its price target to $45 due to concerns about the company’s earnings outlook and guidance track record. This downgrade follows a disappointing fiscal year 2026 outlook and previous guidance cuts in fiscal year 2025. On a more positive note, Stifel has reiterated its Buy rating with a $56 price target after discussions with General Mills’ leadership following their fourth-quarter fiscal 2025 earnings report. These developments highlight a mixed sentiment among analysts regarding General Mills’ future performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.