Shares of food producer General Mills (GIS) - Get Report slid more than 5% on Wednesday after an analyst at Goldman Sachs downgraded his rating on the company's stock to sell from neutral, and lowered his 12-month price target.
Shares of General Mills fell 5.5%, or $2.81, to $48.21 on the New York Stock Exchange on Wednesday after Goldman Sachs analyst Jason English downgraded the stock and reduced his price target to $41 on what he sees as an inevitable performance slowdown following improvement in the company's core business and the impact of its acquisition of pet products company Blue Buffalo.
General Mills is entering a "second chapter of mounting deceleration concerns among investors," English said in a note to clients, noting the ﬁrst chapter of enthusiasm has now "largely played out."
General Mills served up better-than-expected fiscal third-quarter earnings last month as a jump in sales primarily driven by its acquisition of Blue Buffalo prompted the company to raise its guidance.
The food manufacturer, which also produces international brands like Cheerios, Pillsbury, and Haagen-Dazs ice cream, suffered a setback in January after it issued a voluntarily recall of certain bags of its Gold Medal branded unbleached flour over salmonella concerns.