Kellanova price target lowered to $57 from $72 at Piper Sandler

Piper Sandler analyst Michael Lavery lowered the firm’s price target on Kellanova to $57 from $72 and keeps a Neutral rating on the shares. Kellogg completed its spin out of its North American cereal business as WK Kellogg Co. (KLG) and renamed the remaining company as Kellanova (K). For modeling purposes, the firm treats the spin as if it were a divestiture, removing WK Kellogg Co.’s business, while including some stranded costs. Kellanova has a mix lift to growth and margins without cereal. It is likely positioned for potential high-single-digits EPS gains, far above its low-single-digits recent 5-year history, though it has not demonstrated a history of this yet, Piper adds.