General Mills (GIS) Faces Earnings Pressure Amid Price and Quality Challenges

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Highlights:

  • General Mills (GIS, Financial) is under analyst scrutiny as it navigates inflation and pricing strategy challenges.
  • Current analyst forecasts point to a modest potential upside for GIS shares.
  • GuruFocus estimates reveal significant upside potential based on GF Value metrics.

TD Cowen has flagged potential earnings headwinds for major food companies, including General Mills (GIS). These challenges stem from the need to reevaluate pricing strategies and product quality in response to cumulative processed food inflation outpacing the broader Consumer Price Index (CPI) by 800 basis points since 2020. This situation underscores the urgency for strategic pivots.

Wall Street Analysts Forecast

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The consensus among 19 analysts sets a one-year average price target for General Mills Inc (GIS, Financial) at $62.69, with projections ranging from a low of $53.00 to a high of $72.11. This average target suggests a potential upside of 7.97% from the current trading price of $58.06. For more comprehensive details, visit the General Mills Inc (GIS) Forecast page.

Brokerage Recommendations

General Mills Inc's (GIS, Financial) current average brokerage recommendation, derived from 22 brokerage firms, stands at 2.8, signaling a "Hold" position. This rating is based on a scale where 1 represents a Strong Buy and 5 indicates a Sell.

GuruFocus Valuation Insights

According to GuruFocus's projections, the estimated GF Value for General Mills Inc (GIS, Financial) over the next year is $71.66. This valuation points to a substantial potential upside of 23.42% from the current price of $58.0602. The GF Value is GuruFocus's assessment of the fair market value for the stock, calculated from historical trading multiples, past business growth, and anticipated future performance. For an in-depth analysis, refer to the General Mills Inc (GIS) Summary page.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.