General Mills Stock Downgraded by Analysts
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 23 2026
0mins
Should l Buy GIS?
Source: Benzinga
- Downgrade Impact: BofA Securities analyst Peter T. Galbo downgraded General Mills from Buy to Neutral and lowered the price target from $55 to $48, reflecting a diminished recovery outlook across key segments, with an implied upside of 7.6% from current levels.
- Extended Recovery Timeline: Although the company has gained market share, overall volume remains under pressure, particularly as consumer spending among low- and middle-income households recovers more slowly than anticipated, leading to limited volume and sales growth expectations over the next year, with potential stabilization in the second half of fiscal 2027.
- North America Retail Performance: Management has adjusted base pricing for about two-thirds of its portfolio to close price gaps and enhance competitiveness; however, North America retail performance remains inconsistent, with guidance suggesting no improvement or only modest gains in the second half.
- Pet Segment Challenges: The Blue Buffalo pet segment is down 4% year-over-year in fiscal 2024, with inventory issues expected to weigh on results through fiscal 2026, and without renewed growth in the pet segment, General Mills' valuation multiple may align with food industry peers.
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Analyst Views on GIS
Wall Street analysts forecast GIS stock price to rise
15 Analyst Rating
4 Buy
9 Hold
2 Sell
Hold
Current: 45.230
Low
47.00
Averages
52.38
High
63.00
Current: 45.230
Low
47.00
Averages
52.38
High
63.00
About GIS
General Mills, Inc. is a global manufacturer and marketer of branded consumer foods. Its segments include North America Retail; International; North America Pet, and North America Foodservice. The North America Retail segment reflects business with a variety of grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount chains, convenience stores, and e-commerce grocery providers. The International segment consists of retail and foodservice businesses outside the United States and Canada. Its product categories include super-premium ice cream and frozen desserts, meal kits, salty snacks, snack bars, dessert and baking mixes, and shelf-stable vegetables. The North America Pet segment includes pet food products sold in the United States and Canada in national pet superstore chains, e-commerce retailers, and grocery stores. The North America Foodservice segment product categories include ready-to-eat cereals, snacks, and baking mixes.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Realty Income Trust: As the largest net lease REIT with over 15,500 properties, Realty Income offers a 4.8% dividend yield; however, its economic sensitivity due to retail assets is mitigated by a robust 30-year track record of annual dividend growth.
- Challenges for General Mills: Known for its 5.4% dividend yield and 127 years of dividend payments, General Mills faces pressure from shifting consumer preferences towards healthier options, which may impact its stock performance during this investment year.
- Investor Strategy Considerations: While Enterprise Products and Realty Income are suited for conservative income investors, General Mills may appeal to those willing to take on more risk, given its potential for recovery amidst industry headwinds.
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- Brand Strategy: Guided by its Accelerate strategy, General Mills aims to boldly build its brands, relentlessly innovate, unleash scale, and stand for good, further solidifying its leadership position in the global food market.
- Financial Performance: In fiscal 2025, General Mills generated net sales of $19 billion, with an additional $1 billion from non-consolidated joint venture net sales, showcasing the company's strong market performance and profitability.
- Brand Portfolio: The company's portfolio includes beloved brands such as Cheerios, Nature Valley, and Blue Buffalo, which provide a solid foundation for future growth due to their widespread consumer recognition and loyalty.
See More
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- Merger Outlook: Kimberly-Clark's $48.7 billion acquisition of Kenvue, while met with skepticism, is expected to yield $2.4 billion in annual cost savings, which could enhance shareholder value and dividend growth in the future.
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