[Benzinga] General Mills Inc (NYSE:GIS) (TREND ANALYSIS) while raising the price target from $58 to $65.
The analyst believes that while the company’s earnings are sustainable and have higher perceived quality, General Mills has the highest probability among its U.S. food peers to offer value of reinvestment.
The analyst also believes that there is increased visibility into the company’s earnings, driven by core revenue growth, with higher cost enablers.
General Mills has various reinvestment enablers, including “1) the beginning of overhead cost rationalization following zero based budgeting analysis, 2) organizational streamlining, 3) cost of goods productivity, 3) increasing promotion efficiency, and 4) lower input cost inflation,” according to the RBC Capital report.
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General Mills Inc (NYSE:GIS) stock is currently trading 0.85% below its 52-week-high, 18.98% above its 52-week-low. The 1-year stock price history is in the range of $48.32 – $57.98. General Mills Inc (GIS) has a price to earnings ratio of 29.18 versus Consumer Goods sector average of 14.81. GIS stock price has outperformed the S&P 500 by 7.7%. The Diversified Food company is currently valued at $34.42 billion and its share price closed the last trading session at $57.49. The stock has a 50-day moving average of $56.56 and a 200-day moving average of $55.13.
General Mills Inc (GIS) current short interest stands at 14.47 million shares. It has decreased by 5% from the same period of last month. Around 3% of the company’s shares, which are float, are short sold. With a 10-days average volume of 3.01 million shares, the number of days required to cover the short positions stand at 4.9 days.
The company is expected to announce next quarter earnings on September 16, at consensus estimate of $0.69. General Mills Inc (GIS) reported last quarter earnings on July 01. The Diversified Food company announced earnings per share of $0.75 against a consensus Street estimate of $0.71, beating the average estimate by $0.04. This corresponds to an increase of $0.04 compared to the same quarter of the previous fiscal year.
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There are currently seventeen analysts that cover General Mills Inc stock. Of those seventeen, four have a Buy rating, nine have a Hold rating and four have a Sell rating. On a consensus basis this yields to a Hold rating. The consensus target price stands at $57.38.
A recent analyst activity consisted of RBC Capital upgrading their Sector Perform rating to Outperform on July 21. RBC Capital increased their price target on GIS from $58 to $65. This corresponds to a 13.06% upside from the last closing price. On the date of report, the stock closed at $57.21.
Deutsche Bank reiterated their Hold stance on June 1, and increased their price target on GIS stock from $54 to $55. This corresponds to a 4.33% downside from the last closing price. On the date of report, the stock closed at $55.86.
Another research firm was Goldman Sachs who upgraded their Sell rating to Neutral on April 20. Goldman Sachs increased their price target on General Mills Inc from $47 to $56. This translates to a 2.59% downside from the last closing price. On the date of report, the stock closed at $56.02.
Company profile
General Mills, Inc. manufactures and markets branded and packaged consumer foods worldwide. The Company also supplies branded and unbranded food products to the foodservice and commercial baking industries.
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