The firm said it raised its rating on GIS from “Neutral” to “Buy” as part of a broader call on the Packaged Food sector, which was upgraded from “Cautious” to “Neutral.”
Goldman also set a $41 price target on GIS, which implies a 15% upside to the stock’s Tuesday closing price of $35.69. The analyst cited a rapid onset of inflation and higher promotional activity for the upgrade, and noted GIS should see some of the highest organic sales growth in the sector in 2011.
they must have been busy buying and bought enough in the $35 range to manipulate it upward. Margins are and will continue to contract due to input cost increases. There is not room to pass these on to consumers sufficiently who will trade down to generics if it gets too bad.