General Mills downgraded to Neutral at BofA on elongated recovery

As previously reported, BofA downgraded General Mills (GIS) to Neutral from Buy with a price target of $48, down from $55, following the CAGNY conference. The firm’s prior Buy thesis was predicated on a re-acceleration in Pet and stabilization in North America Retail, but “that has gone stale,” the analyst tells investors. Consumer spending recovery has been slower than expected, particularly for low- and middle-income consumers, and while it’s clear that General Mills is taking steps to ameliorate volumes, any potential turnaround has now been pushed out further, the analyst added.