General Mills price target cut to $47; sales forecast trimmed 2%
Mizuho lowered its General Mills price target to $47 from $52 and maintained a Neutral rating after updating its food sector models post-CAGNY presentations. General Mills cut full-year sales forecast by up to 2% and projected a 16–20% drop in operating profit and EPS, causing shares to fall 7%.
1. Mizuho Adjusts Price Target
Mizuho lowered its price target from $52 to $47 while reiterating a Neutral rating, reflecting model changes across the broader food sector following the latest CAGNY presentations.
2. Guidance Revision and Market Reaction
General Mills now expects full-year sales to decline 1.5%–2%, down from a prior flat to modest growth forecast, and sees adjusted operating profit and EPS falling 16%–20%, which led to a 7% share drop and over 28% decline year-to-date.
3. Industry Challenges and Strategic Response
Facing pressure from cost-conscious consumers, private-label competition, GLP-1 weight-loss drugs and protein-focused rivals, General Mills plans to accelerate protein-based innovation to represent about 25% of fiscal 2026 net sales.