Citi cuts General Mills target, opens ‘negative catalyst watch’

Citi analyst Thomas Palmer lowered the firm’s price target on General Mills (GIS) to $58 from $60 and keeps a Neutral rating on the shares. The analyst also opened a “90-day negative catalyst watch” on the shares ahead of next week’s fiscal Q3 report. The firm sees downside risk to both sales and earnings estimates. General Mills’ investments to boost sales growth are weighing on pricing and margins but showing limited benefit to volume, the analyst tells investors in a research note. Citi also believes shipment timing could weigh on the Q3 results while takeaway trends have eroded lately in key categories, especially snack bars and cereal. It views consensus estimates as too high.