Robert Moskow, an analyst from TD Cowen, maintained the Hold rating on Kellanova (K – Research Report). The associated price target is $57.00.
Geoff Meacham has given his Hold rating due to a combination of factors affecting Kellanova’s recent performance and near-term prospects. The company reported a sales and earnings per share beat for the fourth quarter and maintained its earnings guidance for 2024. However, the growth observed was slightly below Kellanova’s long-term target, largely due to a challenging US market. The optimism for the stock hinges on the US segment’s ability to reach its growth algorithm next year and the robustness of the company’s operations in Nigeria amidst a backdrop of rising inflationary pressures in North America.
Despite a decline in North American sales and volume, management’s efforts are geared towards improving service levels, with expectations for a sales turnaround by the third quarter of 2024. Additionally, Kellanova’s announcement of cost-saving initiatives through facility closures parallels strategies employed by other consumer packaged goods companies. Nonetheless, the projected timeline for realizing savings from these closures seems ambitious, particularly when considering the complexities of plant shutdowns observed in similar cases, such as McCormick’s experience in the UK. These elements underpin the Hold rating, as they introduce uncertainty regarding the company’s ability to execute its optimization strategies without hiccups and reflect the mixed operational signals.
Moskow covers the Consumer Defensive sector, focusing on stocks such as Campbell Soup, JM Smucker, and UTZ Brands. According to TipRanks, Moskow has an average return of 5.6% and a 51.82% success rate on recommended stocks.
In another report released today, Deutsche Bank also maintained a Hold rating on the stock with a $58.00 price target.
See Insiders’ Hot Stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Kellanova (K) Company Description:
Kellogg Co. engages in the manufacturing, marketing, and distribution of ready-to-eat cereal and convenience foods. It markets cookies, crackers, crisps, and other convenience foods, under brands such as Kellogg’s, Keebler, Cheez-It, Pringles, Murray, Austin and Famous Amos, to supermarkets in the U.S. It operates through the following seven segments: North America, Europe, Latin America, and AMEA. The North America segment includes U.S. Frozen, Kashi company, and RX businesses. The Europe segment consists of European countries. The Latin America segment comprises of Central America and Mexico. The AMEA segment consists of Africa, Middle East, Australia and other Asian and Pacific markets. The company was founded by Will Keith Kellogg in 1906 and is headquartered in Battle Creek, MI.
Read More on K:
