Mizuho Adjusts General Mills (GIS) Price Target amid Broader Food Sector Model Changes

General Mills, Inc. (NYSE:GIS) is included among the 14 Best Affordable Dividend Stocks to Buy According to Analysts.

On February 23, Mizuho lowered its price recommendation on General Mills, Inc. (NYSE:GIS) to $47 from $52. It reiterated a Neutral rating on the stock. The firm adjusted its models for food companies after the latest CAGNY presentations.

A February 17 Reuters report said General Mills cut its full-year sales and profit outlook. That update weighed on the broader consumer goods sector. Investors reacted quickly as concerns around weak demand and price sensitivity resurfaced. The company said lower-income consumers are moving toward cheaper options and private-label brands. Higher living and housing costs are squeezing budgets. CEO Jeffrey Harmening said these pressures are not temporary. He believes affordability and value are becoming lasting priorities for shoppers. The stock fell 7% after the announcement. Over the past year, shares have been down by over 28%. That decline reflects how difficult the environment has become for packaged food companies.

The industry is also dealing with shifting eating habits. Demand for healthier products continues to grow. GLP-1 weight-loss drugs are adding another layer of uncertainty. General Mills’ cereal segment, one of its core businesses, faces tougher competition from protein-focused breakfast products. The company said it is accelerating innovation in protein-based items, which it expects will represent about 25% of fiscal 2026 net sales. Peers are under pressure as well. PepsiCo recently cut prices on some snack brands after consumers resisted earlier increases. Kraft Heinz paused its breakup plans and lowered its profit outlook after weaker results. Analysts noted that while General Mills is taking steps to stabilize growth, softer demand and heavier promotions are still weighing on performance.

The company now expects annual sales to decline 1.5% to 2%, compared with its earlier forecast of flat to modest growth. It also projects adjusted operating profit and earnings per share will drop 16% to 20%, a steeper decline than previously expected.

General Mills, Inc. (NYSE:GIS) manufactures and markets branded consumer foods globally. Its operations include North America Retail, International, North America Pet, and North America Foodservice.

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