Analysts Respond To General Mills' Mixed Q1

A day after General Mills, Inc. (NYSE: GIS) reported its earnings beat for the first quarter, at least four brokerages have come out with their comment. Significantly, all of them have reiterated their ratings.

However, only one brokerage, UBS, reduced its price target (from $71 to $67) on the company's shares.

On Wednesday, the company earned a profit of $409 million, or $0.67 a share, for the first quarter. On an adjusted basis, it earned $0.78 and came in above the Street estimates of $0.75 per share. Its net sales dipped 7.1 percent to $3.91 billion, which was in line with expectations. The company maintained its outlook for full the year.

Related Link: Yogurt Sales Trends Are Souring For General Mills

One of the concerns among the analysts is that there is a lack of revenue drivers at least in the immediate term to drive the stock higher. This was also quite evident when the management faced queries on revenue trend, especially in the remainder of the current fiscal year during the conference call.

The following are the brokerages' ratings and price objectives on General Mills shares.

Barclays maintains its Equal-Weight rating and a target price of $66. CLSA maintains its Underperform rating and $65 as the price objective. RBC Capital reiterated an Outperform rating with a price tag of $73. UBS maintains its Neutral rating and slashed price objective from $71 to $67.

At time of writing, the stock traded at $64.94, down $0.32, or 0.49 percent.

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