Morgan Stanley Lowers Expectations on General Mills Ahead of Tougher 2Q

In a report published Tuesday, Morgan Stanley analyst Matthew Grainger reiterated an Equal-Weight rating and $49.00 price target on General Mills GIS. In the report, Morgan Stanley noted, “Lowering F2Q and FY EPS below consensus, given softer category volume and more cautious company commentary. While guidance of $2.87-2.90 (+7-8%) F14 EPS remains in reach, we no longer see upside as the year progresses, and sentiment seems likely to be pressured by N-T fundamentals. Remain EW.” General Mills closed on Monday at $49.91.