General Mills price target lowered to $54 from $59 at Evercore ISI

Investing.com - Evercore ISI lowered its price target on General Mills (NYSE:GIS) to $54.00 from $59.00 on Thursday, while maintaining an "In Line" rating on the food company’s stock. The stock currently trades near its 52-week low of $50.66, with InvestingPro data showing technical indicators suggesting oversold conditions.

The price target reduction reflects Evercore’s updated discounted cash flow analysis, which translates to 14 times the firm’s fiscal year 2027 earnings per share estimate. This valuation sits one standard deviation below the stock’s trailing 10-year average. Currently, General Mills trades at a P/E ratio of 11.17x, while offering a substantial 4.74% dividend yield, supported by 55 consecutive years of dividend maintenance.

Evercore’s analysis contemplates an outlook for improved but still below-algorithm organic sales in fiscal year 2026, projecting flat year-over-year performance. The firm maintained its "In Line" rating despite the target reduction.

For fiscal year 2026, Evercore expects General Mills’ price and promotion investments, incentive compensation reset, and dilution from the Yoplait sale to more than offset the benefit of an extra reporting week.

The revised $54 price target represents a significant reduction from the previous $59 target, reflecting adjusted expectations for the consumer packaged goods company’s near-term performance.

In other recent news, General Mills reported a 27% decline in earnings per share for the fourth quarter, though the figure exceeded Stifel’s estimates by $0.05. The company also provided guidance for fiscal year 2026, projecting an earnings per share decline between 15% and 10%, with increased reinvestment efforts expected to impact profits. Stifel lowered its price target for General Mills to $56 while maintaining a Buy rating, suggesting confidence in the company’s long-term growth strategy despite short-term challenges. Mizuho (NYSE:MFG) maintained its Neutral rating with a $60 price target, noting modest earnings upside but cautioning about weaker operating income expectations due to continued reinvestment. Barclays (LON:BARC) reduced its price target to $54, highlighting General Mills’ plans for a national launch of fresh pet food under its Blue Buffalo brand, which involves multi-year investments. BofA Securities lowered its price target to $61, citing execution concerns but defended its Buy rating based on General Mills’ historical performance and strong pet segment. Meanwhile, RBC Capital upgraded General Mills to Outperform, adjusting its price target to $63, based on the belief that the company’s fiscal year 2026 guidance is achievable despite market challenges.

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