NEW YORK (TheStreet) -- Shares of General Mills Inc. (GIS) are lower by 1.25% to $50.72 in early market trading Monday after the packaged food maker had its rating cut to "sector perform" from "outperform" at RBC Capital Markets this morning.
Analysts at the firm also lowered the price target to $54 from its previous $58.
On Friday, the company lowered its sales and profit outlook for the year, citing sales weakness in the U.S. food industry as well as slowing growth in key emerging markets.
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General Mills cut its sales guidance for the year ending in May to a low single-digit growth rate, compared with its previous forecast for growth in the mid-single digits.
The company also cut its fiscal second-quarter earnings outlook to a range of 75 cents to 77 cents per share for the period, lower than the 88 cents per share analysts are expecting.
Separately, TheStreet Ratings team rates GENERAL MILLS INC as a "buy" with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate GENERAL MILLS INC (GIS) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."