General Mills, Inc. (NYSE:GIS) shares rose more than 6% on Wednesday following the company’s reported Q4 results, with EPS coming in at $1.12, better than the Street estimate of $1.01. Revenue was $4.9 billion, beating the Street estimate of $4.8 billion.
The company’s full 2023-year outlook was also better than expected, with projected 4%-5% organic growth, implying a (1%)-2% EPS growth.
Analysts at Deutsche Bank believe the outlook is overall reasonable, especially in the context of the company's fundamental momentum and strong execution throughout the pandemic.
Although the inflationary environment remains tough to call and supply chain challenges are expected to persist, the analysts believe the company is actively implementing SRM initiatives to drive price/mix realization and driving HMM to protect profit dollars. The analysts increased their price target on the company’s shares to $81 from $75, while reiterating their buy rating.