- The stock price of Kellogg Company (NYSE: K) fell by over 3% during intraday trading today. This is why it happened.
The stock price of Kellogg Company (NYSE: K) fell by over 3% during intraday trading today. Investors are responding negatively to a bearish research report.
BMO Capital analyst Kenneth Zaslow downgraded Kellogg from an “Outperform” rating to a “Market Perform” rating. And Zaslow assigned the company a $70 price target.
“We are downgrading Kellogg to Market Perform, as our case for aggressively investing in K is less persuasive at current valuations (in line with 5-year averages), the ongoing challenges in US cereal, and industry-wide supply-constraints/inflation,” wrote Zaslow in a research note. “Our downgrade does not reflect an unfavorable change to its strategic direction highlighted by its ongoing outperformance across its key global power brands, particularly Pringles, Cheez-Its, Pop-Tarts, and Rice Krispie Treats.”
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