12:25 PM EDT, 03/19/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We cut our 12-month target by $4 to $65, about 15x our FY 26 (May) EPS of $4.31 (cut from $4.60; FY 25 cut to $4.35 from $4.49) vs. the 17x long-term mean. Our revised estimates reflect disappointing Q3 FY 25 results and a moderated outlook for FY 26, as GIS faces headwinds from value-seeking consumers and a volatile macro environment. Our estimates do not yet reflect the pending U.S. Yoplait divestiture, which is expected to close in CY 25 and create about a 5%-pt headwind to FY 26 operating profits (EPS to be less impacted due to share buybacks). FY 26 will be a year of reinvestment, as GIS looks to improve its value offering (e.g., smaller pack sizes, more trade promotions, increased advertising) and focus on innovation in order to re-spur growth. Cost savings and extra proceeds from the 53rd week are expected to fund the majority of reinvestment in FY 26. That said, we expect some margin pressure, forecasting operating margins of 17.4% in FY 26, down from an expected 17.7% in FY 25 and 18.1% in FY 24.