Analyst Peter Galbo from Bank of America Securities reiterated a Buy rating on General Mills (GIS – Research Report) and decreased the price target to $68.00 from $70.00.
Peter Galbo has given his Buy rating due to a combination of factors including General Mills’ strategic investment plans and potential for future growth. Despite the current softness in the food industry, General Mills is planning to increase its spending on trade and marketing to improve organic volume trends by FY26. This reinvestment strategy, while expected to result in negative organic sales due to price investments, is aimed at setting a foundation for long-term growth.
Additionally, General Mills is expected to achieve significant savings through holistic margin management and additional cost-saving measures, which will be reinvested into pricing strategies. Although these efforts might lead to a decrease in gross margin percentage and operating profit in the short term, the company is positioned for positive medium-term growth prospects across key geographies and categories. Galbo maintains a Buy rating, adjusting the price objective to $68, reflecting a balanced view of near-term challenges and future growth potential.