A Goldman Sachs analyst recently adjusted the price target for General Mills (GIS, Financial) to $53, down from the previous target of $58, while maintaining a Neutral rating on the stock. This revision follows the company's fourth-quarter performance, where its fiscal year 2026 guidance fell short of expectations.
Despite the conservative outlook, General Mills has reported positive outcomes from its enhanced investment initiatives. Additionally, the company continues to leverage its portfolio of strong, recognizable brands that have historically demonstrated robust pricing power.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for General Mills Inc (GIS, Financial) is $59.90 with a high estimate of $72.11 and a low estimate of $50.00. The average target implies an upside of 18.92% from the current price of $50.37. More detailed estimate data can be found on the General Mills Inc (GIS) Forecast page.
Based on the consensus recommendation from 22 brokerage firms, General Mills Inc's (GIS, Financial) average brokerage recommendation is currently 2.9, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for General Mills Inc (GIS, Financial) in one year is $71.21, suggesting a upside of 41.37% from the current price of $50.37. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the General Mills Inc (GIS) Summary page.
GIS Key Business Developments
Release Date: June 25, 2025
- Volume Growth: Focus on returning to volume growth, particularly in North America Retail (NAR).
- Value Investments: Expanded investments in value for products like soup, cereal, and fruit snacks.
- Product Innovation: Launches in fresh pet food and protein innovation in NAR portfolio; renovation of Häagen-Dazs stick bars.
- International Share Growth: Achieved share growth in international businesses, food service, health share, and pet segments.
- Margin Management: Record levels of holistic margin management and productivity initiatives.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- General Mills Inc (GIS, Financial) is focusing on returning to volume growth, particularly in North America Retail (NAR), with successful investments in value and advertising for brands like Pillsbury and Totino's.
- The company is launching new products and renovating existing ones, such as Häagen-Dazs stick bars, which are expected to drive growth.
- General Mills Inc (GIS) has seen share growth in international businesses, food service, and health share, providing confidence in their global strategy.
- The company is backing up investments with record levels of holistic margin management and productivity initiatives.
- The national launch of Blue Buffalo in the fresh pet food category is expected to be profitable and grow the business, supported by strong consumer reception and retailer interest.
Negative Points
- The level of reinvestment planned for fiscal '26 is deeper than anticipated, raising concerns about the margin profile and potential long-term impacts.
- There is uncertainty regarding the reversal of inventory build in the pet segment, which has shown lumpiness and volatility.
- The organic revenue growth guidance for fiscal '26 is flat, with challenges in achieving positive pricing territory.
- The fresh pet food category growth has slowed, impacting expectations for the business's long-term potential.
- Salty snacks have underperformed due to undersized participation in growth trends, requiring significant improvements in value proposition and marketing.
