General Mills (GIS) PT Lowered to $53 at Piper Sandler

Piper Sandler analyst Michael Lavery lowered the price target on General Mills (NYSE: GIS) to $53.00 (from $60.00) while maintaining an Overweight rating.

The analyst commented: "The cost of meeting consumers' expectations on value have grown beyond what GIS had initially expected, as consumers have been buying more promoted volume (+2pp) and less non-promoted volume (-3pp), hurting its top-line and margins. Its volume momentum continues to improve sequentially, but mix is a bigger drag than expected from these consumer shifts. Planned F26 innovation remains on track, with more launching in F2H26, but a hesitant consumer continues to weigh on top-line, bottom-line, and category momentum. It also under-shipped sell-through in January, though much of the gap likely reverses near-term. We lower our F26E EPS from $3.65 to $3.46 and our F27E EPS from $3.80 to $3.62. We lower our PT from $60 to $53, now using 14.0x C27E EPS (prior: ~15.5x C26E EPS) on a slower path to more sustainable organic revenue growth."

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