UPDATE: Morgan Stanley Reiterates Underweight Rating, Removes PT on General Mills Following News of Annie's Acquisition

In a report published Tuesday, Morgan Stanley analyst Matthew Grainger reiterated an Underweight rating on General Mills GIS, but removed the $51.00 price target. In the report, Morgan Stanley noted, “We view Mills' announced acquisition of BNNY for 22x 2015e EV/EBITDA as strategically sound and modestly accretive to both topline/EPS, but see stock upside as limited by the lofty multiple. Of equal importance is the positive read-through to other growth names in US Food (HAIN, BDBD).” General Mills closed on Monday at $53.51.