BofA Reiterates Buy, $42 PT On General Mills
In a note out today, Bank of America reiterated a Buy rating and $42 price target on General Mills (NYSE: GIS), implying decent upside from where the shares currently reside.
"GIS reported EPS of $0.76 vs. our $0.78 estimate and consensus $0.79 estimate. Downside versus our estimate was driven by weaker than expected gross margins as higher inflation costs and lower volumes due to improved inventory management, more than offset improved pricing. Key takeaways: 1) overall categories and sales growth remain strong, as volumes have held up better than expected despite significant pricing; 2) Yogurt remains a tough category but GIS expects their performance to stabilize through innovation; 3) International results performed well with solid growth across the portfolio, and FX will not have a major impact on profit in F2H12; and 4) GIS reiterated F12 EPS guidance of $2.59-$2.61," the bank said in the note.
Shares of General Mills, the second-largest U.S. food company, are up 1.2% today.
