UPDATE: Morgan Stanley Downgrades General Mills to Equal-Weight on Fewer Catalysts Ahead

In a report published Monday, Morgan Stanley analyst Matthew Grainger downgraded the rating on General Mills

from Overweight to Equal-Weight, but raised the price target from $43.00 to $49.00. In the report, Grainger noted, “In addition to the Food sector's broad-based rally, Mills' YTD outperformance has been driven by several stock-specific catalysts, including: (i) issuance of on-algorithm F2014 guidance, supported by a benign inflation outlook; (ii) a larger than anticipated dividend increase; and (iii) the completion of a period of elevated M&A. In addition, we note that Mills' already ‘lean' SG&A profile, while a L-T positive, limits the flexibility for accelerated cost reductions going forward.” General Mills closed on Thursday at $49.31.