General Mills Has Room For Further Guidance Boost, Says Credit Suisse

Credit Suisse analyst Robert Moskow reiterated a Neutral rating on the shares of General Mills Inc GIS and raised the price target to $77 from $74.
Contrary to the expectations, Q1 FY23 gross margin turned expansionary in the quarter, owing to strong elasticity and less bad operating deleverage.
The company did not raise its inflation outlook by a material amount, noted Moskow.
Related: General Mills Boosts FY23 Outlook Post Q1 Results
The analyst thinks General Mills' performance was better than its peers, including, Kraft Heinz Co KHC, Hormel Foods Corp HRL, and McCormick & Company Inc MKC, which recently warned about higher costs in Q3.
Also Read: McCormick Shares Drop After Gloomy Outlook
In addition to the outlook boost, the company has a lot of flexibility to ramp up its profit guidance again, if merited, noted Moskow.
Sales growth deceleration from consumer mobility and elasticity of demand from higher pricing represents the main risk to the target price, said the analyst.
Price Action: GIS shares are trading higher by 1.43% at $80.86 on the last check Thursday.
Photo Via Company