Goldman Sachs analyst Jason English maintained a Buy rating on Kellanova (K – Research Report) on February 8 and set a price target of $69.00.
Jason English has given his Buy rating due to a combination of factors related to Kellanova’s recent performance and future outlook. Kellanova has concluded 2023 with impressive growth in emerging markets, while also maintaining solid performance in North America. The company’s guidance suggests a strong organic growth momentum, expecting approximately 3% growth in the upcoming fiscal year. This forecast, coupled with anticipated margin expansion, supports Kellanova’s earnings per share projection of $3.55 to $3.65, aligning with the optimistic outlook presented during their investor day.
Additionally, Kellanova’s fourth-quarter earnings surpassed expectations, delivering $0.78 EPS from continuing operations against consensus estimates of $0.75. Their organic sales growth notably exceeded predictions, driven by considerable volume increases and robust performance across various segments, especially in AMEA and European markets. Despite higher sales and general administrative expenses, the company’s earnings before interest and taxes margin remained largely as anticipated. With management’s expectations for continued organic sales growth led by key snack brands and emerging markets, along with consistent currency-adjusted earnings before interest and taxes, English’s Buy rating reflects confidence in Kellanova’s capacity to sustain and build on its recent success.
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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.
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- Kellanova Reports 2023 Fourth Quarter Results
