The U.S. Department of Health and Human Services is anticipated to unveil a comprehensive plan aimed at eliminating artificial food dyes from the national food supply. This move builds upon an earlier decision by the FDA in January, which prohibited the use of red dye No. 3 in edible products and medications.
This initiative signals a more extensive effort to phase out petroleum-based synthetic dyes, known for their role in enhancing the visual appeal of food and beverages. This policy change could significantly impact several publicly traded companies involved in the production and use of these dyes.
Among the affected companies are International Flavors & Fragrances (IFF), Sensient Technologies Corporation (SXT), General Mills (GIS, Financial), Kraft Heinz (KHC), PepsiCo (PEP), and Coca-Cola (KO). The potential overhaul in regulatory standards may require these companies to adjust their product formulations and supply chains to comply with the new dye restrictions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for General Mills Inc (GIS, Financial) is $62.69 with a high estimate of $72.11 and a low estimate of $53.00. The average target implies an upside of 9.30% from the current price of $57.35. More detailed estimate data can be found on the General Mills Inc (GIS) Forecast page.
Based on the consensus recommendation from 22 brokerage firms, General Mills Inc's (GIS, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for General Mills Inc (GIS, Financial) in one year is $71.66, suggesting a upside of 24.94% from the current price of $57.3537. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the General Mills Inc (GIS) Summary page.
