Megan Alexander, an analyst from Morgan Stanley, maintained the Sell rating on General Mills. The associated price target remains the same with $48.00.
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Megan Alexander’s rating is based on several critical factors affecting General Mills’ performance. Despite some positive signs of volume stabilization in North America Retail, there are ongoing challenges in the Pet segment and concerns about the overall structural headwinds facing the company’s Organic Sales Growth (OSG). The management’s optimism about future growth, particularly in the Pet segment and through innovation, is tempered by the current weak underlying performance.
Megan Alexander remains cautious due to the uncertainty surrounding the durability of elasticity benefits from recent pricing strategies and the lack of sustained historical volume growth in North America Retail. While there have been improvements in competitiveness and some encouraging scanner data trends, these are not sufficient to offset the broader concerns. Consequently, the recommendation for General Mills’ stock remains a Sell, reflecting the anticipated muted OSG and the structural challenges that persist.
In another report released on September 18, UBS also maintained a Sell rating on the stock with a $47.00 price target.
Based on the recent corporate insider activity of 94 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.