Goldman Sachs Downgrades General Mills (GIS) to Sell

January 11, 2013 8:10 AM EST Send to a Friend
Get Alerts GIS Hot Sheet
Price: $54.38 +1.06%

Rating Summary:
    1 Buy, 10 Hold, 4 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 9 | Down: 10 | New: 35
Trade GIS Now!
Join SI Premium – FREE
Goldman Sachs downgraded General Mills (NYSE: GIS) from Neutral to Sell with a price target of $40.00 (from $42.00) saying they expect underperformance relative to our sector as EPS falls short of consensus on lower sales growth and reinvestment

"We believe GIS has a product cycle issue with a US retail portfolio that appears over-extended," the analyst said. "We believe either retailer- or manufacturer-led pruning is inevitable and likely to result in continued share losses. Data suggest that (1) this is under way in non-Greek yogurt and likely to impair its recovery in the yogurt category and (2) the cereal portfolio is at risk. We cut out-year estimates as a result but raise this year after the 2Q beat."

Cuts FY14 EPS from $2.89 to $2.84 and FY15 from $3.14 to $2.97.

For an analyst ratings summary and ratings history on General Mills click here. For more ratings news on General Mills click here.

Shares of General Mills closed at $41.60 yesterday.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst EPS Change, Analyst PT Change, Downgrades, Hot Downgrades

Related Entities

Goldman Sachs

Add Your Comment