The firm has an "outperform" rating on shares of the Minneapolis, MN-based consumer foods company.
The higher price target is due to improving sales prospects and margin upside in fiscal 2017 and beyond.
"Our analysis suggests that U.S. sales may finally be turning, and that significant EBIT margin upside exist," RBC wrote in an analyst note.
"Our analysis suggests that a meaningful sales acceleration may finally begin in FY17 as a result of: 1) lapping of Walmart's (WMT) 'clean store' initiative; 2) improving cereal trends; and 3) easing yogurt comparisons," the firm added.
The increased price target reflects: improving sales visibility, mergers and acquisitions and further savings upside due to relative lack of shareholder protections.
Valuation is supported by General Mills' relatively low free-cash-flow multiple.
Underperformance in yogurt has been a huge hit to the company's earnings power in fiscal 2016. But RBC believes dramatically easing comparisons and new innovation may lead to significant improvement next year.
Shares of General Mills are down 0.9% to $65.19 on Friday morning.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of A on the stock.
The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity, expanding profit margins, good cash flow from operations and growth in earnings per share.
The team believes its strengths outweigh the fact that the company has had generally high debt management risk by most measures that were evaluated.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: GIS