Wells Fargo downgraded General Mills (GIS) to Underweight from Equal Weight with a price target of $35, down from $45. The firm downgraded three food names to Underweight citing their higher leverage and dividend payout ratios as well as earnings risk. The “convergence” of earnings risk, higher leverage and “tight” dividends will likely drive share underperformance relative to peers, the analyst tells investors in a research note. Wells sees negative profit catalysts for General Mills.
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