- The shares of Kellogg Company (NYSE: K) have received an $87 price target from Citi. These are the details.
The shares of Kellogg Company (NYSE: K) have received an $87 price target from Citi. And Citi analyst Wendy Nicholson increased the price target on Kellogg from $83 while maintaining a “Buy” rating on the shares.
Nicholson 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.
Nicholson pointed out that while details regarding future cap structure and pro forma financials of the remaining entities is scant at this juncture, a sum-of-the-parts analysis that indicates upside to the current price of Kellogg shares.
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