Wells Fargo Downgrades General Mills to “Market Perform” (GIS)

Early on Thursday, Wells Fargo analysts downgraded packaged foods company General Mills, Inc. (GIS), as they see limited upside in the stock due to an increasingly cautious outlook on U.S. retail food fundamentals.

The analysts downgraded GIS from “Outperform” to “Market Perform” and see shares reaching a range between $48 and $50, down from the previous valuation range of $53 to $55. This new price target range suggests a slight downside to the stock’s Wednesday closing price of $50.15.

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“GIS features a portfolio uniquely positioned for long-term global growth, in our view, but near term, consumer headwinds, weak food industry volumes, and the potential for heightened food promotion may temper earnings growth and weigh on investor sentiment,” said Wells Fargo analyst John Baumgartner.

General Mills shares were down $1.00, or 1.99%, during early morning trading on Thursday. The stock is up 21.62% year-to-date.