Kellogg Company (K) Stock: $76 Target From Goldman Sachs

By Amit Chowdhry ● Updated June 30, 2022
  • The shares of Kellogg Company (NYSE: K) have received a $76 price target from Goldman Sachs. These are the details.

The shares of Kellogg Company (NYSE: K) have received a $76 price target from Goldman Sachs. And Goldman Sachs analyst Jason English increased the price target on Kellogg from $70 while maintaining a “Neutral” rating on the shares.

English adjusted the rating after the company announced plans to separate into 3 independent companies through two tax-free spin-offs. It includes:

1.) Global Snacking Co. – With about $11.4 billion* in net sales, will be a leading company in global snacking, international cereal and noodles, and North America frozen breakfast, with iconic, world-class brands and strong underlying growth momentum and profitability;

2.) North America Cereal Co. – With about $2.4 billion* in net sales, will be a leading cereal company in the U.S., Canada, and Caribbean, with a portfolio of iconic, world-class brands and compelling opportunities for investment and profit growth; and

3.) Plant Co. – With about $340 million in net sales will be a leading profitable and pure-play plant-based foods company, anchored by the MorningStar Farms brand, with a significant opportunity to capitalize on strong long-term category prospects by investing further in North America penetration and future international expansion.

“Kellogg announced plans to split the company into 3 businesses, with plans to spinoff its North America Cereal and plant-based products (together 20% of 2021 sales and 13% of adj. EBITDA), while retaining its global snacking, international cereal/noodles, and North America frozen breakfast offerings,” wrote English in a research note. “Management believes this split will enable the three companies to more effectively focus on different strategic priorities; it expects tax-free spinoffs to complete by the end of 2023. We raise our 12-month price target to $76, from $70, as we now incorporate a SOTP component into our price target.”

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.