J.P. Morgan Reiterates Overweight on General Mills

J.P. Morgan is out with its report today on General Mills GIS, reiterating Overweight. In a note to clients, J.P. Morgan writes, "We are reiterating our Overweight rating on the shares of General Mills following a modest earnings capitulation on yesterday's earnings call. Mills guided to a $2.60 to $2.62 range for its core business in fiscal 2012, or growth of 5-6% versus the 8% implicit in the $2.68 consensus – hardly a disaster. Given the thrifty valuation – at 13.5x our anticipated calendar 2012 earnings, it is the cheapest stock in our large-cap coverage – and likelihood that input inflation will ease, the GIS shares appear to us a compelling opportunity." J.P. Morgan maintains a $42 PT on GIS. Shares of GIS closed Wednesday at $37.38, up 0.46% from Tuesday's close.