Stifel has adjusted its valuation view on General Mills Inc. (NYSE: GIS), trimming the price target to $50 from $52 but leaving a Buy rating intact. The move comes after Stifel analyst Matthew Smith reviewed General Mills’ presentation at the 55th CAGNY conference, which began Tuesday.
At the time of the update the stock was trading at $44.52, near its 52-week low, and carries a price-to-earnings ratio of 9.64 - a level noted in the materials as indicating potential undervaluation according to InvestingPro analysis.
During its lead-off presentation at the annual consumer goods gathering, General Mills signaled a softer demand backdrop that prompted downward revisions to its fiscal 2026 outlook. Management attributed the weaker trajectory to a slower recovery in consumer spending, which it said has driven higher promotional volumes alongside an overall decline in category volumes.
The company pointed to particular weakness in several key categories: cereal, dog food and snacks. These areas were highlighted by management as underperforming against prior expectations and are central to the outlook adjustments announced at the conference.
Specific changes to guidance included a revised expectation for organic net sales to decline between 1.5% and 2% in fiscal 2026, narrowing and shifting the previous forecast that ranged from down 1% to up 1%. On profitability, General Mills now projects a drop in adjusted operating profit and adjusted diluted earnings per share of 16% to 20% in constant currency, a deeper contraction than the earlier expectation of a 10% to 15% decline.
In a strategic portfolio move disclosed alongside the outlook update, General Mills completed the sale of its Muir Glen organic tomato brand to Violet Foods LLC. Financial terms for the transaction were not disclosed. The acquisition expands Violet Foods’ holdings across tomato product brands, according to the company announcement.
Other sell-side firms have also revised their views. TD Cowen lowered its price target to $45 from $47 and kept a Hold rating, citing weak consumer sentiment weighing on category growth. Piper Sandler cut its target to $53 from $60 while maintaining an Overweight rating, referencing margin pressure tied to changing consumer purchase behavior.
Stifel’s reduction in the price target reflects the same underlying themes flagged by General Mills and other analysts: a slower consumer recovery, elevated promotional activity, and category-specific softness that together are expected to pressure sales and profitability in fiscal 2026.
Investors will be watching how the company manages promotional intensity and category mix going forward, and whether the portfolio adjustment represented by the Muir Glen divestiture materially alters near-term sales composition.