General Mills (GIS) Receives a Buy from Susquehanna

By Jason Carr

In a report released today, Pablo Zuanic from Susquehanna maintained a Buy rating on General Mills (GISResearch Report), with a price target of $56. The company’s shares closed on Friday at $44.18, close to its 52-week low of $41.01.

Zuanic wrote:

“We continue to recommend GIS shares (7% FCF yield; 4.4% div yield; bottom of the large-cap food group at 13.6x P/E), and keep monitoring three catalysts: sequential sales improvement post fiscal 1Q19, signs of pricing coming through (to improve gross margin trends), and ongoing progress at Blue Buffalo. As we explain in this note, pricing and pet food should be positive catalysts for the stock in the near term, but on the other hand, US sales trends ex pet have not improved. Still, with overall sentiment improving for the group, and the current investor shift to “safety,” we think GIS is well positioned to outperform.”

According to, Zuanic is a 4-star analyst with an average return of 5.9% and a 50.7% success rate. Zuanic covers the Consumer Goods sector, focusing on stocks such as Coca-Cola European Partners plc, Constellation Brands Inc, and Anheuser-Busch Inbev Sa.

General Mills has an analyst consensus of Moderate Buy, with a price target consensus of $49.57.

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General Mills’ market cap is currently $26.34B and has a P/E ratio of 12.25. The company has a Price to Book ratio of 4.23.

Based on the recent corporate insider activity of 71 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of GIS in relation to earlier this year.

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General Mills, Inc. engages in the manufacture and marketing of branded consumer foods sold through retail stores. It operates through the following segments: North America Retail; Convenience Stores & Foodservice; Europe & Australia; and Asia & Latin America; and Pet.