K - Kellogg attracts upgrade at Bernstein ahead of spinoff

2023-06-22 13:31:54 ET

Kellogg ( NYSE: K ) tracked slightly higher on Thursday after Bernstein upgraded the food stock to Market Perform from Underperform after becoming more comfortable on the valuation multiples.

Analyst Alexia Howard says the share price underperformance by Kellogg ( K ) relative to food peers is due in part to reduced investor interest following the company's spinoff announcement. "The spin off creates uncertainty, but valuation is cereal-ously attractive," she noted. Other factors seen working in Kellogg's ( K ) favor were relatively modest stranded cost estimates and a fair sum-of-the-parts value post spin off that should take place at the end of this year.

Howard still expects a sluggish year for Kellogg ( K ) and set a price target of $62 to imply a downward swing.

Shares of Kellogg ( K ) rose 0.53% to $65.59 vs. the 52-week trading range of $63.74to $77.17.

More on Kellogg:

• Kellogg: Higher Dividend And Upcoming Spin-Off Makes It More Attractive Than General Mills
• Valuation metrics on Kellogg
• Recent options trades on Kellogg
• Seeking Alpha's Quant Rating for Kellogg

For further details see: