On Wednesday, General Mills (NYSE:GIS) saw its price target increased by Jefferies to $69.00 from the previous $66.00, while the firm maintained a Hold rating on the stock.
This adjustment comes after the company's management discussed strategies for marketing and brand engagement, including the return of the iconic Doughboy character, in an effort to bolster consumer connections.
The company has experienced a decline in overall market share, particularly in the dough products category. Despite this setback, there has been a notable sequential improvement in tracked channel volumes each month since June. This incremental recovery has prompted some optimism regarding the company's sales growth guidance for the fiscal year 2025.
General Mills' pet segment is also showing signs of stabilization, according to the firm's commentary. The maintained Hold rating reflects a cautious but watchful stance on the stock's future performance in light of these developments. The firm's analysis suggests that while challenges remain, there are emerging signs of potential growth and stability in key areas of General Mills' business.
In other recent news, General Mills has been the focus of various analyst firms. Goldman Sachs initiated coverage on the company with a Buy rating, citing the strength of its portfolio.
However, Argus downgraded the company's stock from Buy to Hold due to ongoing volume weaknesses and inflationary pressures. Mizuho and TD Cowen revised their price targets for General Mills due to concerns about growth delay and increased investments for volume growth.
In the realm of company news, General Mills has appointed Asheesh Saksena as Chief Strategy & Growth Officer, bringing experience from his previous roles at Gap, Inc. (NYSE:GAP) and Best Buy (NYSE:BBY). The company also outlined capital allocation priorities that include internal investment for growth, dividend increases, and potential mergers and acquisitions in the $1 billion to $1.5 billion range.
These are recent developments that investors should be aware of. The company's fourth-quarter 2024 results exceeded consensus expectations, but it also revealed a significant revenue shortfall and weaker-than-anticipated guidance for fiscal year 2025. Despite these challenges, General Mills announced plans to stimulate volume growth through significant investment, with cost savings expected to offset inflationary pressures.
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