UPDATE: Jefferies Cuts PT to $41 on General Mills on Muted Outlook

Jefferies reiterates its Hold rating on General Mills

and reduces its price target from $41 to $40. Jefferies notes, "GIS reported adj. 4Q12 EPS of $0.60, 2 cents better than we expected. FY13 adj. EPS guidance forecasts only about 4% growth, as the company is facing a higher tax rate and pension contributions. That being said, some of GIS' businesses are still facing major challenges and even though management laid out its restructuring and innovation plans in detail today, we remain cautious about the health of the company's overall U.S. business." GIS closed at $37.55 on Wednesday.