General Mills (GIS) PT Lowered to $60 at Mizuho

Mizuho analyst John Baumgartner lowered the price target on General Mills (NYSE: GIS) to $60.00 (from $62.00) while maintaining a Neutral rating.

The analyst commented: "FQ3 EPS details were largely consistent with sentiment expressed at CAGNY; sales weakness in snacks and inventory de-stocking, across multiple retailers, has pressured EBIT in H2 FY25. However, sharp yr/yr FQ4 profit pressure from reinvestment (worth -13% to yr/yr EBIT) responds to the weakness both sooner and with larger resources than expected. Although multiple points for optimism exist for FY26 (strong innovation pipeline, enhanced marketing resources, cost savings), an emphasis on reinvestment, hard H1 laps on trade promo timing, and an incentive comp reset firmly position FY26 for below-algo growth; we don't model growth in organic revenue or EBIT until FQ3. We are reducing our EPS ests. for FY25E ($4.19 from $4.36) and FY26E ($4.30 from $4.48), and our price target ($60 from $62) on ‾13x our CY25E EBITDA."

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