11:26 AM EDT, 03/19/2026 (MT Newswires) -- General Mills' ( GIS ) operating backdrop will likely stay challenging through fiscal 2027, and doubts persist over revenue growth as sales volumes have not improved despite price investments, UBS Securities said in a note Wednesday.

The company reported fiscal Q3 results that fell short of analyst estimates in key metrics such as organic sales, gross margin, and operating profit margin, analysts said.

The company expects fiscal Q4 organic sales to increase due to mechanical tailwinds such as shipment timing, but implied Q4 consumer demand will likely not meaningfully improve quarter over quarter, UBS said.

With the stock trading at a premium to peers who are facing similar challenges, its risk/reward profile continues to skew to the downside, according to the note.

With General Mills ( GIS ) continuing to guide to earnings and organic sales declines for fiscal 2026, UBS said it lowered its fiscal 2026 EPS to $3.37 from $3.44 previously.

UBS maintained its rating at sell and reduced the price target to $35 from $40.

Price: 37.53, Change: -0.07, Percent Change: -0.17