General Mills (GIS) faces persistent North American retail market share losses and weaker revenue growth, UBS Securities said Wednesday in a report, initiating coverage of the company's stock with a sell rating.

Sagging demand, an incentive compensation reset and the impact from its yogurt divestitures will more than counter gains from cost savings in fiscal year 2026, the report said.

UBS said estimates from Wall Street "appear optimistic," and its forecast for organic sales growth was 70 basis points lower than market expectations.

The firm's fiscal 2026 estimate for per-share earnings of $3.89 is 3% below

Wall Street expectations, partly amid "challenging" operational and consumer scenarios, according to the report.

UBS has a price target of $54 on General Mills stock.

The company's shares fell 1.1% in recent Wednesday trading as the broader equity market climbed.

Price: 57.42, Change: -0.65, Percent Change: -1.11