General Mills downgraded to Neutral from Buy at Goldman Sachs

Goldman Sachs downgraded General Mills (GIS) to Neutral from Buy with a price target of $58, down from $68. The firm says center-of-store food companies continue to face a number of headwinds, including increasing cost pressures along with “tepid” volume demand amid ongoing consumption shifts toward fresh and increasing competition from private label and smaller brands. It could take a few quarters of consistent execution to regain investor confidence, as some of these pressures likely persist in the near term, the analyst tells investors in a research note. As such, Goldman sees limited upside potential for estimates of related companies in the near term. General Mills’ sales trends have slowed, with softer volumes across key categories, adds the firm.