On Thursday, Evercore ISI maintained its In Line rating and $72.00 price target for General Mills (NYSE:GIS) shares, traded on the New York Stock Exchange under the ticker NYSE:GIS. The firm's stance comes with expectations of a modest beginning leading to a stable year for the company.
The analyst from Evercore ISI projected a slight dip in earnings per share (EPS) for the first quarter of the fiscal year, anticipating $1.06, which is a 3% year-over-year decrease. This figure aligns closely with the consensus estimate of $1.05.
The forecast is supported by scanner data analysis, suggesting a 2% drop in organic sales for General Mills' North American Retail segment, which is slightly better than the consensus prediction of a 3% decline.
Looking ahead to the fiscal year 2025, Evercore ISI expects General Mills to experience flat growth in total company organic sales. Moreover, the firm anticipates a 1% fall in operating profit. These projections are notably lower than the company's trailing five-year average growth rates, which stood at 5% for organic sales and 6% for operating profit.
General Mills, a leading global food company, has been navigating a complex market environment. The company's performance and Evercore ISI's projections reflect the challenges and stabilization efforts within the food industry.
Investors and market watchers will likely continue to monitor General Mills' performance against these projections, as the company strives to maintain its market position amidst shifting consumer preferences and economic conditions.
In other recent news, General Mills confirmed its financial targets for fiscal year 2025, which include expectations of flat to 1 percent organic net sales growth and adjusted operating profit ranging from a 2 percent decline to flat in constant currency.
Deutsche Bank raised its price target on General Mills to $70, maintaining a Hold rating, while Jefferies also raised its price target from $66 to $69, maintaining a Hold rating. On the other hand, Argus downgraded General Mills' stock from Buy to Hold due to ongoing volume weaknesses and inflationary pressures.
General Mills appointed Asheesh Saksena as Chief Strategy & Growth Officer, who brings previous experience from Gap, Inc. (NYSE:GAP) and Best Buy (NYSE:BBY). The company also confirmed that it is considering potential mergers and acquisitions in the $1 billion to $1.5 billion range as part of its capital allocation priorities. Goldman Sachs initiated coverage of the company with a Buy rating, emphasizing the strength of the company's diverse product portfolio.
These recent developments highlight General Mills' strategic growth plans and its efforts to navigate current market challenges while positioning itself for future success. It's important for investors to note these recent developments as they provide insight into the company's current strategies and future plans.
InvestingPro Insights
As Evercore ISI maintains its stance on General Mills (NYSE:GIS), real-time data and InvestingPro Tips provide additional context for investors considering the company's stock. According to recent InvestingPro data, General Mills has a market capitalization of $40.7 billion, with a Price/Earnings (P/E) ratio of 16.79. The company's revenue for the last twelve months as of Q4 2024 stands at $19.86 billion, despite a slight decrease in revenue growth of -1.18%.
InvestingPro Tips highlight that management's aggressive share buyback strategy and a history of raising its dividend for four consecutive years may signal confidence in the company's financial health. Moreover, the company has maintained dividend payments for an impressive 54 consecutive years, which could be a testament to its stability and commitment to shareholder returns. The dividend yield as of the latest data is 3.28%, and the dividend growth for the last twelve months is 11.11%.
These metrics and strategic moves by General Mills management could be of interest to investors looking for stable dividend-paying stocks. For more InvestingPro Tips related to General Mills, investors can explore the full list of tips available on https://www.investing.com/pro/GIS, where additional insights into the company's financials and performance are provided.
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