RBC Capital reiterated an Outperform rating and $65.00 price target on General Mills (NYSE: GIS) following the company's 1Q16 earnings. EPS beat of $0.79 yesterday compared to consensus of $0.69. The company reaffirmed its FY16 guidance,

Analyst David Palmer commented, "We are maintaining our price target of $65 but lowering our FY16 EPSe to $2.97 from $3.00 (+4.1% yoy; consensus $2.97), following the company's 1QF16 earnings, due to added currency headwinds. We continue to believe US retail sales will accelerate (ex Green Giant) while gross margin improvement will decelerate over the next three quarters after the company realized greater than expected cost savings this quarter."

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Shares of General Mills closed at $57.13 yesterday.