General Mills' (GIS) Q1 beat does not materially alter investor concerns about the company returning to sustainable organic growth in a challenged consumer environment, UBS Securities said in a note Wednesday.

While North America retail consumption and market share trends have improved sequentially, the company's commentary suggests a gradual recovery that will be driven primarily by improved pricing rather than a meaningful volume inflection, according to the note.

The investment firm said it now expects Q2 earnings per share of $0.90, down from previous expectation of $0.99, and fiscal 2027 EPS of $3.00, down from $3.01 previously. Fiscal 2027 organic sales are projected to decline 0.1%, the firm added.

UBS maintained its sell rating on the stock, with a $33 price target.

Shares of General Mills were down more than 2% in Thursday trading.

Price: 35.06, Change: -0.77, Percent Change: -2.14