General Mills (GIS) could see improved performance as North America Retail sales trends improve, guidance remains intact, and new initiatives support future growth, RBC Capital Markets said in a note Thursday.

The company delivered a strong start to fiscal 2027, with better-than-expected results and improving market share trends in North America Retail, increasing confidence in the company meeting its annual targets, while new product launches, marketing efforts and supply chain changes could support future growth, according to the note.

The company's new pack center should give it more flexibility to respond to changing customer needs and speed up product development, especially in online sales channels.

RBC expects some challenges to remain, including weak performance from the Blue Buffalo Wilderness pet brand and higher costs, with General Mills expecting fourth-quarter fiscal 2027 inflation of about 6%.

The investment firm raised its fiscal 2027 earnings estimate slightly to $3.07 from $3.05.

RBC kept its outperform rating and $45 price target on the company's stock.

Price: 35.27, Change: -0.55, Percent Change: -1.54