In a report released today, David Palmer from Evercore ISI maintained a Hold rating on General Mills (GIS – Research Report), with a price target of $65.00.
David Palmer has given his Hold rating due to a combination of factors impacting General Mills. The company is facing volume headwinds, with its US consumption trends showing softness primarily due to market share losses in its categories. Despite these challenges, General Mills remains optimistic about achieving its long-term targets of organic revenue and operating profit growth, leveraging trends like increased snacking and digital channel usage.
Palmer notes that while the company is working to stabilize its struggling brands through innovation and marketing, the current consumption decline is significantly worse than the category average growth. The Hold rating is maintained with a price target of $65, based on a DCF analysis that reflects a challenged outlook for volume and price/mix. The rating also considers the potential for efficiencies and cost savings to fund necessary investments, alongside growth opportunities in the pet and foodservice segments.
Palmer covers the Consumer Cyclical sector, focusing on stocks such as Wendy’s, Darden Restaurants, and Brinker International. According to TipRanks, Palmer has an average return of 7.6% and a 63.36% success rate on recommended stocks.
In another report released on March 21, Barclays also maintained a Hold rating on the stock with a $60.00 price target.