General Mills (GIS) PT Lowered to $41 at Piper Sandler

Piper Sandler analyst Michael Lavery lowered the price target on General Mills (NYSE: GIS) to $41.00 (from $45.00) while maintaining an Overweight rating.

The analyst commented: "GIS looks roughly on track to hit its updated F26 guidance (organic sales growth -2.0% to -1.5%, EBIT and EPS each down -20% to -16%), though likely at the low end. US F4Q26 merchandising is skewed to May, which could boost momentum, and pipeline fill for June innovation launches may as well, though we include this in our estimates. It then has the unenviable position of giving F27 guidance in a highly uncertain consumer and input cost environment. It also is facing structural retailer inventory headwinds in Pet, as channel mix shifts to mass and online (which are more inventory-efficient) from pet specialty stores. We trim our F26E EPS from $3.38 to $3.35 and F27E EPS from $3.35 to $3.25, both driven by higher interest expense and softer top-line expectations. We trim our target from $45 to $41, now ~12x C27E EPS (prior: ~13x) on softer growth expectations."

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