uploads///GIS ANR

What Wall Street Recommends for General Mills Stock

By

Mar. 14 2018, Updated 9:02 a.m. ET

Analysts maintain a neutral view

The majority of analysts continue to keep a neutral view on General Mills’ (GIS) stock. The company’s top line is likely to disappoint, as improvement in snacks, cereals, and frozen meals are expected to be offset by declines in yogurt sales. Plus, margin pressure from input cost inflation and higher transportation expenses remain a drag. However, the company’s focus on cost savings, price restructuring, and higher sales from new product launches are expected to support the company’s financials.

The company recently announced the acquisition of Blue Buffalo Pet Products, which is expected to be accretive to its sales and operating profit margins. However, many believe the company paid a steep price for the acquisition, leading to a debt-to-EBITDA ratio of 4.2x, which seems a bit high.

Article continues below advertisement

Target price and rating summary

Of the 20 analysts providing recommendations on General Mills’ stock, 75.0% suggest a “hold,” 15.0% recommend a “buy,” and 10.0% maintain a “sell” rating. Meanwhile, analysts recommend a price target of $57.72 per share on GIS stock, which reflects an upside potential of 11.1% to its closing price of $51.97 on March 12.

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

Advertisement

More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.