Argus analyst Taylor Conrad issued a Buy rating on the snacks company, Kellanova (NYSE: K), as he believes that the recent share price weakness presents a buying opportunity. Over the past five trading sessions, Kellanova has fallen by more than 6% following the spin-off of its cereal business.
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The analyst noted challenges from changing consumer demand and retail trends but praised cost reduction efforts and growth initiatives. The analyst expects that the spinoff is likely to enhance product innovation and margin growth.
Conrad termed Kellanova’s valuation as attractive at 14 times Argus’ 2024 EPS estimate, which is still below the peer average of 17x. The analyst has a price target of $63 on the stock, implying an upside potential of 24.9% at current levels.
What is Kellogg’s (now Kellanova) forecast?
Analysts remain sidelined about K stock with a Hold consensus rating based on two Buys, nine Holds, and one Sell.