We have learned that Morgan Stanley (MS) is sour on General Mills (GIS). Morgan Stanley has just lowered its price target on General Millsto $52, about where it trades right now, to account for the FQ1 profit miss and new EPS estimates. They stated :”We continue to see risk to the F18 outlook due to ongoing topline uncertainty and resulting volume deleverage/reinvestment needs,” The thinktanm expects the food company to report 2018 EPS of $3.08 (16.9 PE) and 2019 EPS of 3.20 (16.3 PE).

We believe this is pretty bearish and could knock the stock into the $40 range.

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