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Investing.com - Piper Sandler has reiterated an Overweight rating and $60.00 price target on General Mills (NYSE:GIS), following discussions with the company’s CFO Kofi Bruce. The stock, currently trading near its 52-week low at $49.72, appears undervalued according to InvestingPro analysis, while offering an attractive 4.92% dividend yield.
The research firm highlighted General Mills’ focus on innovation as a key strategy to return to growth, particularly in fiscal year 2026. The company plans to increase innovation broadly across its portfolio of products. With a defensive beta of -0.01, the stock often moves independently of market fluctuations, making it an interesting consideration for portfolio diversification. Get deeper insights into General Mills’ valuation metrics and 8 additional exclusive ProTips with InvestingPro.
Piper Sandler noted that General Mills is implementing price resets across its product lines, recognizing that innovation is only effective when products are offered at appropriate price points. These price adjustments are expected to be completed by the end of fiscal year 2026.
The company anticipates that once price resets are complete, fiscal year 2027 should see volume stability or modest growth. This timeline suggests a strategic approach to rebuilding momentum in the packaged food segment.
Regarding the Blue Buffalo pet food line, General Mills is focusing its fresh pet food distribution and marketing efforts on light users and former Blue Buffalo consumers, with the understanding that scale will be critical to achieving General Mills-level margins over time.
In other recent news, General Mills has completed the sale of its U.S. yogurt business to Lactalis, which includes brands like Yoplait and Go-Gurt, as well as manufacturing facilities in Tennessee and Michigan. This transaction is part of General Mills’ strategic moves following its fourth-quarter fiscal 2025 earnings report. The company’s fiscal 2026 guidance has raised concerns, with UBS lowering its price target to $49 due to a weaker-than-expected outlook. The midpoint of the earnings per share forecast indicates a double-digit percentage decline year-over-year. JPMorgan also downgraded General Mills to Underweight, citing growth concerns and a disappointing fiscal 2026 outlook. Conversely, Stifel has maintained a Buy rating with a $56 price target after discussions with company leadership. Meanwhile, Bernstein has reduced its price target to $55, pointing to category headwinds affecting consumer eating habits. These developments reflect a mixed sentiment among analysts about General Mills’ future performance.
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