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Sonia Vora

Sonia Vora is an equity analyst for Morningstar.

More From Sonia Vora

We expect the wide-moat packaged foods maker's gross margins to bounce back and think shares are undervalued.

With the purchase of narrow-moat Blue Buffalo, wide-moat General Mills is hoping to prop up sales, as top-line growth across the packaged foods landscape remains elusive.

The softening hard cider category and continued competition in the maturing craft beer market will constrain longer term volume growth.

Shares are trading slightly below our fair value estimate, but we think investors should wait for an entry point with a more favorable risk/reward opportunity.

Top-line gains will be feasible as a result of growth in the narrow-moat company’s above-premium offerings, share gains in the premium light segment, and improved branding in the economy segment.

Despite near-term challenges, we see substantial opportunity in the above-premium whiskey market and contend that the wide-moat company will be a beneficiary of strong consumer demand for higher-end spirits.

A robust portfolio of noncarbonated beverages and snacks will allow the wide-moat firm to weather declining carbonated soft drink volumes more easily than its peers.

More About Sonia Vora

Sonia Vora is an equity analyst for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. She covers beverage stocks in the consumer sector. She joined Morningstar in 2014.

Vora holds a bachelor’s degree in economics from the University of Chicago.

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