General Mills (GIS) Stock Forecast & Price Target

General Mills has demonstrated resilience during recent inflationary pressures, successfully implementing pricing increases in response to rising costs, coupled with sustained consumer demand for its products amid pantry-loading dynamics from the COVID-19 pandemic. The company’s pet segment, despite a decline in growth, has outperformed expectations, and there is optimism regarding the potential return to growth for the Blue Buffalo brand through premiumization and expansion into new markets. Moreover, General Mills is positioned for future growth, supported by a strong innovation pipeline, expected acceleration in core business segments, and margin benefits derived from restructuring efforts and pricing strategies.

General Mills's financial performance is facing challenges, as evidenced by a lowered estimate for 3Q organic growth at -3.1% and a projected EBIT decline of over 4%. The company is experiencing ongoing inventory headwinds, particularly in its North American retail business, which management has described as more significant than previously anticipated. Additionally, the international segment's organic growth is faltering, influenced by tough comparisons from the previous year and ongoing macroeconomic pressures, contributing to a troubling trend of underperformance relative to peers in the consumer staples sector.