General Mills stock rating reiterated as Buy by Stifel amid growth strategy

Published 15/10/2025, 13:18
General Mills stock rating reiterated as Buy by Stifel amid growth strategy

Investing.com - Stifel has reiterated its Buy rating and $56.00 price target on General Mills (NYSE:GIS), currently trading near its 52-week low at $48.58, following an investor day at the company’s Minneapolis headquarters. The stock, which offers a notable 5.02% dividend yield, has maintained dividend payments for 55 consecutive years.

The event featured presentations by senior management focused on strategies to improve volume performance to support sustainable organic sales growth. General Mills confirmed its fiscal year 2026 guidance and long-term growth algorithm, stating it remains on track to exit FY26 with positive organic sales growth. According to InvestingPro data, 15 analysts have recently revised their earnings expectations downward for the upcoming period.

The company expects earnings to decline 10% to 15% in FY26, including approximately 4.5% drag from base business performance and higher investment levels, plus an 8 percentage point drag from divestitures/acquisitions and incentive compensation reset.

Stifel views the higher reinvestment levels planned for FY26 and the anticipated improved volume performance favorably, noting these factors position General Mills well for an improved and balanced outlook into FY27 and beyond.

The firm maintained its Buy rating and $56 target price on General Mills stock following the investor day presentations.

In other recent news, General Mills has announced a significant restructuring initiative aimed at enhancing its supply chain competitiveness. This plan includes closing its North America Foodservice pizza crust manufacturing facility in St. Charles, Missouri, and two North America Pet manufacturing facilities in Joplin, Missouri. The company anticipates incurring approximately $82 million in restructuring charges, with $64 million attributed to asset write-offs and $18 million to other costs, including severance. In addition, General Mills declared a quarterly dividend of $0.61 per share, payable on November 3, 2025, to shareholders of record as of October 10, 2025.

Moreover, at its recent annual meeting, General Mills shareholders approved all board nominees and executive pay proposals. Piper Sandler has reiterated its Overweight rating on General Mills, citing the company’s strong positioning for sustainable organic revenue growth. Meanwhile, Bernstein has maintained its Market Perform rating, acknowledging advancements in digital technology but expressing concerns about the growth trends in the North America Retail segment. These developments reflect the company’s ongoing efforts to adapt and position itself for future growth.

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