JP Morgan Reiterates OW Rating on General Mills

JP Morgan is reiterating its Overweight rating on General Mills, Inc. GIS. “We continue to like Mills given better pricing, forthcoming innovation, and an improving U.S. cereal category,” JP Morgan writes. “Additionally, we suspect the announced Yoplait acquisition could prove accretive, although there are risks associated with the deal. Mills now trades at 13.2x our calendar 2012 estimate, a full turn below its key competitor Kellogg K (14.4x) and over a turn below its peer group (14.9x). We reiterate our December 2011 price target of $42 based on 15x our calendar 2012 EPS estimate of $2.80.” General Mills closed Friday at $36.85.