General Mills: Analysts’ Recommendations and Target Prices



Ratings and target price summary

General Mills (GIS) finally reported improved sales in fiscal 2Q18 after tepid performance over the past several quarters. Following the announcement of the company’s improved performance and upbeat guidance, some analysts raised their target price on the company’s stock.

Deutsche Bank raised its target price on General Mills stock to $56 per share from $53 and maintained a “hold” recommendation, while Credit Suisse increased the price target to $60 from $53 and maintained a “neutral” rating.

General Mills’ sales are expected to benefit from favorable currency rates and a higher net price realization. Meanwhile, new products are expected to drive the company’s top line higher. However, soft industry trends and a tough retail landscape could hinder its upward movement.

Article continues below advertisement

The company’s profitability is projected to see sequential improvement, as margin headwinds are expected to subside. Meanwhile, increased cost savings and a lower outstanding share count are also expected to support its bottom line growth. However, increased input costs are anticipated to remain a drag in the near term.

Of the 21 analysts covering General Mills’ stock, 72% recommended “hold,” 14% recommended “buy,” and 14% recommended “sell.” General Mills stock closed at $58.76 on December 20, 2017, implying a downside of 3.8% to the analysts’ 12-month price target of $56.53 per share.

Peer comparison

Most analysts have a neutral outlook on Kellogg (K), Hershey (HSY), J.M. Smucker (SJM), and Campbell Soup (CPB) stock. Meanwhile, analysts have a positive outlook on Kraft Heinz (KHC), Mondelēz (MDLZ), and Conagra Brands (CAG) stock.


More From Market Realist