General Mills: BofA upgrades its recommendation to buy

(CercleFinance.com) - Bank of America announced on Friday that it had upgraded its recommendation on General Mills shares from 'neutral' to 'buy', with a price target raised from $78 to $80.


The investment bank explains that it expects the US food group to return to organic sales growth faster and more sustainably than its competitors, driven in particular by a re-acceleration of its animal feed business.

From his point of view, the stock offers investors the opportunity to gain exposure to the recovery of the animal nutrition market, and to benefit from the return to favor of value stocks, thanks to fundamentals that are more attractive than those of its peers.

The New York-based firm adds that an overhaul of the business portfolio (divestment of yoghurts in North America, targeted acquisitions in cat and dog treats) could also be a positive factor for the stock, benefiting growth and margins over time.

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