RBC Capital Markets sees a bright outlook ahead for General Mills . The bank upgraded shares of the packaged foods company to an outperform rating from sector perform. Analyst Nik Modi did lower his price target to $63 per share from $67, but that still implies upside of 24%. General Mills on Wednesday reported mixed results for its fiscal fourth quarter, but RBC pointed to General Mills’ forecast for next year as a bright spot for the report. Importantly, this guidance bakes in the level of reinvestment needed to direct the company back toward topline growth, while still giving it enough wiggle room to beat its earnings target, Modi said. GIS YTD mountain GIS YTD chart “While we acknowledge investor sentiment around packaged food remains poor and fundamentals have yet to fully turn, we believe GIS’s FY’26 EPS guidance embeds enough cushion for it to deliver, despite an ongoing sluggish environment,” Modi wrote. “We are also encouraged by management’s acknowledgment that prices need to come down further.” General Mills’ valuation also looks attractive, the analyst said. “GIS has been a relative underperformer this year within consumer staples, trailing the XLP by ~23% YTD and the S & P500 by ~24% YTD,” he said. “In 2025 YTD, GIS’s discount to its peer group has continued to widen and has reached the widest level seen in the past 5 years.” Shares of General Mills have plunged 21% in 2025. Most analysts covering the stock are on the sidelines. Of the 22 who cover it, 17 rate it a hold, LSEG data shows.
