General Mills shares remain in focus for investors as the company raised its FY outlook

General Mills (NYSE: GIS) shares have advanced in the 2020 year by more than 9%, and the current price stands around $58.8. The company’s business has proven stability throughout the Covid-19 pandemic, and shares of this company look like a good value investment.

General Mills, Inc., is an American multinational manufacturer and marketer of branded consumer foods, including Gold Medal flour, Annie’s Homegrown, Betty Crocker, Yoplait, Colombo, among others. Its brand portfolio includes more than 90 leading U.S. brands, and the company also became a major player in upscale pet foods due to its 2018 acquisition of Blue Buffalo.

General Mills has benefited from the increase in meals eaten at home during the pandemic, and the company’s revenue had increased in the 2020 fiscal year to $17.62B from 16.86B in 2019. General Mills has increased its profit and market share in many areas; the 2020 fiscal year’s net income was $2.18B, while the 2019 fiscal year’s net income was $1.75B.

General Mills reported Q1 results in December; total revenue has increased by 6.8% Y/Y to $4.72B while Q3 GAAP EPS was $1.11 (beats by $0.13). Total revenue has increased above the expectations (+ $70M), and the company expects its FY2021 results to be in line or better than the previous year.

The company declared a $0.51/share quarterly dividend, and it is essential to say that General Mills has paid a dividend every year since 1989.

Another positive fact is that Credit Suisse has a buy rating on General Mills with a price target of $67. Wells Fargo also reported an optimistic view for General Mills while the average Wall Street price target stands around $63.

“We expect General Mills to retain more of the consumers who tried its brands during the pandemic than its food peers will. Consistent reinvestment into product quality, e-commerce, and media support has helped General Mills gain or hold market share in 8 of its top 10 categories,” said analyst Robert Moskow from Credit Suisse.

The critical support levels are $55 and $50; $60 and $65 represent the resistance levels. If the price jumps above $60, it would be a signal to trade General Mills shares, and the next target could be around $65.

On the other side, if the price falls below the $55 support level, we have the open way to $50.

General Mills shares have advanced in the 2020 year by more than 9%, and the company’s business has proven stability throughout the Covid-19 pandemic. The company’s revenue has increased in Q1 2021 by 6.8%, and General Mills expects its FY2021 results to be in line or better than the previous year. Credit Suisse has a buy rating on General Mills with a price target of $67, while Wells Fargo also reported that it has a positive view for this company.

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