Barclays Maintains an 'Overweight' on General Mills (GIS); Is EPS Target Just a Starting Point for 2012?

Barclays maintains an 'Overweight' on General Mills (NYSE: GIS), PT $38.50.

Barclays analyst says, "While GIS reported F3Q11 EPS in line with both our estimate and consensus forecasts, we suspect that the make-up of the result was not quite what the street had hoped for. With GIS' core US Retail segment posting -1% organic sales coupled with a -1.5% decline in operating profit, it's not surprising to us that shares were weak yesterday...While it may take time for investors to gain comfort with GIS' ability to push through further pricing across its segments in FY12, with shares trading at nearly a -10% discount to the group on CY11 P/E, potential downside is likely priced in here, in our view." (Barclays lowers FY11 EPS estimate by $0.01 to $2.48)

For more ratings news on General Mills click here and for the rating history of General Mills click here.

Shares of General Mills closed at $36.24 yesterday.

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