General Mills (GIS) PT Lowered to $49 at BofA/Merrill Lynch Following 3Q
BofA/Merrill Lynch lowered its price target on General Mills (NYSE: GIS) to $49.00 (from $57.00) while maintaining a Neutral rating following the company's 3Q earnings report. Analyst Bryan Spillane believes that results and guidance were disappointing despite organic sales growth being largely in-line with our forecasts and management guidance.
BofA/Merrill Lynch lowered FY18 operating forecasts by $130m due to the 3Q miss and updated management guidance. Margins are being pressured by rising input costs as well as higher operating costs related to co-packing and other supply chain costs.