UBS has commenced its coverage of General Mills (GIS, Financial) with a 'Sell' rating, setting a price target of $54 for the company. This target suggests a potential 6% decrease in value from its current trading levels.
The financial institution expresses skepticism about the current market estimates for General Mills' fiscal 2026 performance, both in terms of revenue and profitability. Despite a significant downward adjustment in projections following the company's mid-March earnings report, UBS still considers these expectations overly hopeful.
UBS points out that General Mills may face challenges in achieving its profit goals, citing potential hurdles such as the need for reinvestment, effects from recent yogurt business divestitures, and changes in incentive compensation structures. The firm believes that these factors are not yet reflected in the stock's valuation, indicating further potential downside.
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 $62.64 with a high estimate of $72.11 and a low estimate of $53.00. The average target implies an upside of 7.88% from the current price of $58.06. 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 23.42% from the current price of $58.06. 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.
