General Mills Faces Balanced Risk-Reward Scenario Amidst Sales Challenges and Strategic Adjustments
Wall Street analyst Robert Moskow from TD Cowen maintains a Hold rating on General Mills with a $48.00 price target, citing a balanced risk-reward scenario. The company faces sales challenges, with slight improvements expected in the third quarter and aims for positive growth by the fourth quarter. The North America Retail segment shows negative organic sales growth, while the Pet Food segment has mixed performance. Management aims for positive growth by fiscal year 2026, despite challenges in moving away from price discounting.
General Mills, the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Robert Moskow from TD Cowen maintained a Hold rating on the stock and has a $48.00 price target.
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Robert Moskow’s rating is based on a combination of factors that suggest a balanced risk-reward scenario for General Mills. The company’s management has indicated a slight improvement from the first quarter, aligning with the consensus expectation of a -2.9% change. However, disruptions like the SNAP program might push some sales into the third quarter, and the real challenge will be in the fourth quarter when the company aims for positive value sales growth after previous price reductions.
In the North America Retail segment, organic sales growth remains negative, with a slight improvement from the previous quarter. While the company has seen volume share gains in key categories, there is still work to be done to restore dollar growth. The Pet Food segment shows a mixed performance, with stable organic growth but continued pressure in certain product lines. Management’s guidance for fiscal year 2026 suggests a narrowing gap between volume and value trends, aiming for positive growth by the fourth quarter, but challenges remain in moving away from price discounting.
