General Mills, the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Megan Alexander from Morgan Stanley maintained a Sell rating on the stock and has a $48.00 price target.
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Megan Alexander’s rating is based on several factors that suggest challenges for General Mills in achieving near-term growth. Despite the company’s efforts to boost organic sales through brand enhancement and product innovation, there are concerns about the current consumer environment and the overall softness in the market categories. These factors create uncertainty about the company’s ability to achieve a significant turnaround in its top-line growth.
Megan Alexander also points out that while General Mills has a solid plan to address these challenges, including improving price competitiveness and expanding into faster-growing categories, the structural headwinds remain significant. The company’s reaffirmed guidance for FY26 indicates modest growth expectations, which, combined with the ongoing external pressures, leads to a cautious outlook on its near- and medium-term growth potential. As a result, the Sell rating reflects skepticism about the company’s ability to overcome these hurdles in the near future.
In another report released today, UBS also maintained a Sell rating on the stock with a $47.00 price target.