Kellogg recently got a rating upgrade form analysts at Bank of America.
The analysts at Bank of America boosted their rating on the cereal maker’s stock to buy from underperform.
They also raised their 12-month price target for the shares to $75 from $53. This is based on a multiple of 17.6 times on earnings-per-share estimate of $4.26 of calendar-year 2021. This represents a 10% premium to the company’s peers, according to the analysts.
The analysts, led by Bryan Spillane, are expecting the Kellogg’s organic sales to grow +2.3% in fiscal 2020, and net sales to rise by + 0.1%. The analysts are projecting operating profit growth (excluding the Keebler divestiture) of +6%.
According to the analysts, Kellogg has taken measures to boost sales growth over the past two years, even as profits have lagged. The analysts are expecting things to improve further in 2020, as they believe that “disruptive actions” to propel growth have been taken by the company – something that should allow more room to focus on restoring profitability, according to the analysts.
“While there is still work to do in U.S. cereal, we view Kellogg as well positioned to drive sustained low single-digit organic sales growth going forward,” the analysts wrote in a note.
On July 26, 2024, the Stochastic Oscillator for K moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 67 instances where the indicator left the oversold zone. In of the 67 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a company, which engages in the production and distribution of cereals, cookies, crackers and frozen foods
Industry FoodSpecialtyCandy