Oct 6 (Reuters) - Morgan Stanley upgraded General Mills Inc (GIS.N) to "overweight" from "equal-weight," notify ing the create r of Cheerios cereal and Yoplait yogurt is increasingly well-positioned within the U.S. packaged food sector.
"Unlike the majority of our cautious rated food universe, we have limited concerns about General Mills' ability to grow the top line," Morgan Stanley analysts wrote in a note to clients.
General Mills, unlike many of its competitors, has increased both improper advertising spfinish and its innovation efforts, even in the economic malaise of the past 12 months, giving the company a competitive advantage on the top line, the analysts said.
They said the stock's valuation is compelling relative to others in the sector, as substantial operating outperformance is likely to continue.
The analysts also raised their price taracquire on General Mills' stock to $72 from $64.
"Even if inplace costs reinflate and the promotional environment acquire s highly uncooperative, we still expect Mills to deliver operating results in excess of the majority of its peers," the analysts said.
General Mills' shares were up 91 cents at $64.87 Tuesday morning on the New York Stock Exchange.
(Reporting by Viraj Nair in Bangalore; Editing by Maju Samuel)
((viraj.nair@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: viraj.nair.reuters.com@reuters.net)) Keywords: GENERALMILLS/RESEARCH MORGANSTANLEY
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