General Mills (GIS – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst yesterday. Analyst Leah Jordan from Goldman Sachs maintained a Buy rating on the stock and has a $68.00 price target.
Leah Jordan has given her Buy rating due to a combination of factors influencing General Mills’ current and future performance. Despite a reduction in FY25 guidance that was more significant than anticipated, Jordan believes that General Mills is taking necessary steps to enhance volume growth by FY26. The company’s recent price investments are already showing positive results, and its defensive portfolio is positioned more favorably compared to its peers.
Additionally, General Mills is addressing the slowdown in its snacking segment by implementing strategies such as price-pack architecture, increased trade spending, and innovative marketing efforts. These initiatives are expected to close price gaps and drive volume growth, as evidenced by the recent recovery in brands like Pillsbury and Totinos. Jordan views these efforts as indicative of the company’s ability to adapt and maintain consumer engagement, even amidst investor concerns about broader market trends.
In another report released today, Stifel Nicolaus also maintained a Buy rating on the stock with a $65.00 price target.
Based on the recent corporate insider activity of 86 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GIS in relation to earlier this year.