March 15 Update: How Wall Street Analysts View General Mills
On March 15, 2017, General Mills (GIS) was trading at $61.16, which may have already factored in the estimates we’ve discussed in this series. In this part, we’ll look at analysts’ recommendations and estimated target prices for the stock over the next 12 months.
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It appears that General Mills’s (GIS) reduced revenue and EPS guidance for fiscal 2017 led analysts to lower the price target for the next 12 months. On March 15, 2017, analysts expected General Mills’s stock price to touch $62.30, which represents a return potential of 1.8%. Before the company announced its fiscal 2Q17 earnings, analysts had forecasted a target price of $66.10.
The 12-month target prices for General Mills’s peers are as follows:
- Kellogg (K): $82.19, with a return potential of 10%
- B&G Foods (BGS): $47.33, with a return potential of ~12.6%
- Pinnacle Foods (PF): $61.69, with a return potential of ~4.9%
Of the 18 analysts that cover General Mills (GIS), 16.7% gave GIS a “buy” recommendation, 72.2% gave it a “hold” recommendation, and 11.1% gave it a “sell” recommendation. General Mills’s stock price moves in tandem with these analysts’ recommendations. As analysts raise their next-12-month target prices, the stock price can also increase, and vice versa.
Although General Mills’s stock price is lower than its target price, it doesn’t mean an automatic “buy.” Before committing to a purchase, investors should carefully analyze the various factors that we covered in this series.