More Squawk From Jim Cramer: General Mills (GIS) Stock Downgrade ‘Un-American’
NEW YORK (TheStreet) -- General Mills (GIS) - Get Report stock is down 0.73% to $62.24 in late morning trading on Tuesday after Goldman Sachs downgraded the food company to "sell" from "neutral."
"It's un-American," TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning.
Goldman Sachs analysts forecast a 7% downside to the stock price, which could fall to $58 per share because of challenges in the food industry, including lower organic sales, weaker earnings and pressured margins.
"I didn't like the fact that they said they need to make a big acquisition," Cramer added, referring to Goldman Sachs analysts' expectations that General Mills will need to make a large, expensive acquisition to deliver strong returns in the short term.
"No one has sold General Mills and made money," Cramer observed.
Separately, General Mills has a "buy" rating and a letter grade of A at TheStreet Ratings because of the company's solid stock price performance, notable return on equity, expanding profit margins, good cash flow from operations and earnings per share growth.
You can view the full analysis from the report here: GIS
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
