Jefferies Lowers General Mills Price Target to $47 Amid Volume Recovery

Jefferies has revised its price target for General Mills (GIS) down to $47, a reduction from its prior estimate, as the company reports a sustained improvement in product volumes across its key categories. The adjustment comes amid signs of stabilization in consumer spending on packaged foods, particularly in the company’s core brands such as Cheerios, Pillsbury, and Old El Paso. While pricing power remains under pressure due to inflationary cost inputs, volume trends have shown a consistent turnaround since the third quarter of 2025. The shift in outlook underscores the firm’s recognition of underlying demand recovery within the consumer staples sector. GIS reported a 2.3% year-over-year increase in volume growth during the most recent quarter, marking the third consecutive period of positive volume movement. This improvement follows two years of volume declines driven by discretionary spending cuts and shifting household budgets. Despite the target reduction, Jefferies maintains a 'Hold' recommendation on GIS, indicating no change in its investment stance. The firm notes that while margin compression from raw material costs and supply chain volatility continues to constrain earnings, the volume rebound provides a meaningful foundation for future top-line expansion. Analysts expect the company to leverage its strong distribution network and brand equity to further capture market share in the coming fiscal year. Investors in the consumer staples space, particularly those tracking large-cap food and beverage equities, are closely monitoring GIS’s trajectory. The stock has traded within a $51–$54 range over the past three months, and the revised target suggests limited near-term upside. However, the volume improvement may support investor confidence in the company’s long-term resilience amid uncertain economic conditions.