Kellanova initiated with a Neutral at Citi

Citi analyst Thomas Palmer initiated coverage of Kellanova with a Neutral rating and $57 price target. The company’s portfolio has more growth exposure following the recent spin-off of the declining North America cereal business, but flow-through to earnings growth “could be somewhat muted,” given mix headwinds and limited free cash flow in excess of the dividend to drive interest expense or share count lower, the analyst tells investors in a research note.