01:25 PM EDT, 06/25/2025 (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 price by $10 to $55 on 15x our FY 26 (May) EPS of $3.68 (cut from $4.31; FY 27 initiated at $4.04) vs the 17x long-term mean. Our downwardly revised EPS estimates reflect heavier-than-expected reinvestment in FY 26, as GIS looks to spur growth in both its human and pet food products via price investments, innovation, and marketing. Volume stabilization seems to be a priority for FY 26, even if it comes at the expense of profit margins. Our biggest concern is the time and effort it could take for GIS to rebuild margins once volumes stabilize. We forecast about 15% operating margins in FY 26, down from its 17%-18% historical rate. We're also cautious about GIS's entrance into fresh pet food given slower category growth (albeit still growing faster than dry pet food) and its premium price points. Our Hold opinion reflects our view of a balanced risk/reward, particularly given the potential for stronger earnings growth in FY 27.