Jefferies Initiates Coverage On General Mills

Jefferies & Co. is initiating coverage on General Mills GIS with a Hold rating and a $40 price target on shares. In a note to clients, Jefferies writes, "We are initiating coverage of General Mills with a $40 price target and Hold rating. We see GIS as a good operator with good domestic brands, a strong cost saving culture, successful innovation, and good management. However, we are missing a catalyst for better growth. The U.S. is already well penetrated, the international exposure is limited, and the pending international Yoplait acquisition will not be a transformational event." Shares of GIS gained 19 cents yesterday to close at $38.28, a gain of 0.5%.