Piper Sandler on General Mills (GIS): 'Slower Momentum, De-Stocking Drive Our Outlook Lower'; PT Lowered

Piper Sandler analyst Michael Lavery lowered the price target on General Mills (NYSE: GIS) to $71.00 (from $84.00) while maintaining a Overweight rating.

The analyst commented: "Slower Momentum, De-Stocking Drive Our Outlook Lower; GIS has several top-line growth headwinds in F3Q25E in both NAR and Pet from retailer inventory de-stocking. Additionally, sell-through momentum is running soft in both segments. We also see possible risk from regulatory uncertainty, mainly tariffs, though risk is mostly from any retaliatory tariffs into Canada, as its products there are made in the US. Momentum in China remains soft, as well. However, GIS may get some offset by savings from lower incentive comp in F25E. We lower our F25E EPS from $4.39 to $4.32 and our F26E EPS from $4.53 to $4.35. We lower our price target from $84 to $71, now using a ~15.5x multiple (prior: ~17.5x) on slower top-line growth expectations and to better align with large cap consumer peer valuation expectations."

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