K - Kellogg gains after Goldman Sachs fires off upgrade

2023-06-27 07:30:03 ET

Goldman Sachs upgraded Kellogg Company ( NYSE: K ) on Tuesday to a Buy rating after having the food stock slotted at Neutral. The firm sees the stock as mispriced for the growth potential it offers investors and recommends investors buy the secularly advantaged growth name on sale.

Analyst Jason English said that as inflation helped food companies grow exceptionally in recent years due to higher pricing power, lower growth now threatens that acceleration. Kellogg, he says, is well positioned to benefit regardless of the environment.

"K stands out as one of the few who will be able to sustain increasingly scarce growth given its favorable end-market exposure and strong business momentum. Yet it is valued among the prospective laggards," noted English.

Shares of Kellogg ( K ) rose 2.50% in premarket trading to $67.24 vs. the 52-week range of $63.74 to $77.17. The stock is down 7.92% on a year-to-date basis, which ranks 32nd out of 48 stocks in the packaged food sector.

More on Kellogg:

• Kellogg: Higher Dividend And Upcoming Spin-Off Makes It More Attractive Than General Mills
• Consumer stocks are in the spotlight with student loan repayments and food disinflation in the mix
• Valuation metrics on Kellogg
• Seeking Alpha's Quant Rating for Kellogg

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