BofA Securities Downgrades General Mills (GIS) to Neutral with $48 Price Target
BofA Securities analyst Peter Galbo has downgraded General Mills (NYSE: GIS) from Buy to Neutral, cutting the price target to $48 from a previous $55. The downgrade reflects growing concerns about the pace of the company’s recovery amid a challenging consumer spending environment and ongoing struggles in key business segments.
Why the Rating Changed
The downgrade from BofA Securities centers on several specific concerns about General Mills’ near-term outlook:
- Slower-than-expected consumer spending recovery: BofA cited that the consumer spending recovery has been slower than anticipated, which directly impacts General Mills’ ability to return to meaningful top-line growth. Despite some recent improvements in volume share, the broader demand environment remains soft.
- Remaining challenges despite volume share improvement: While the company has shown some positive signs in recapturing volume share, BofA believes these gains are not sufficient to offset the headwinds the company faces. The firm sees remaining challenges that cloud the path to a sustained recovery.
- Pet segment struggles: Analysts have pointed to difficulties in General Mills’ pet food segment — which includes the Blue Buffalo brand — as a notable drag on the company’s overall performance. Weakness in this segment adds another layer of uncertainty to the growth outlook.
- Broader Wall Street caution: BofA’s move aligns with a wider trend of cautious sentiment on General Mills. Multiple analysts have either downgraded the stock or lowered price targets, reflecting a consensus view that uncertain growth in key segments makes the risk-reward profile less attractive at current levels.
The reduction in price target from $55 to $48 represents a meaningful cut and suggests BofA sees limited upside from the stock’s current trading levels under a neutral outlook.
General Mills’ Dividend Profile
One area that continues to attract income-focused investors is General Mills’ dividend. The company currently pays an annual dividend of $2.44 per share, which translates to a dividend yield of approximately 5.47%. The most recent ex-dividend date was April 9, 2026.
A yield above 5% is notable for a consumer staples company and may provide a degree of downside support for the stock. However, investors should monitor whether the company’s earnings trajectory can comfortably sustain the current payout, particularly given the softer consumer spending environment and segment-level challenges highlighted by analysts. A high yield can sometimes signal that the market is pricing in risk to the dividend or to future earnings growth.
What This Means for Investors
BofA’s downgrade signals that even among traditionally defensive consumer staples names, General Mills faces company-specific headwinds that may limit near-term returns. The combination of a sluggish consumer recovery, competitive pressures, and underperformance in the pet segment creates a cautious backdrop. Income investors may find the 5.47% yield compelling, but the stock’s growth profile warrants careful evaluation before adding to positions.
Disclaimer: This blog post is for informational purposes only and does not constitute financial advice. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.