Kellogg upgraded to Market Perform from Underperform at Bernstein

Bernstein analyst Alexia Howard upgraded Kellogg (K) to Market Perform from Underperform with a $62 price target. Kellogg’s relative underperformance and “cheap current valuation” are likely a product of reduced investor interest in the stock post the company’s spinoff announcement, says the firm, which argues that investors ignored the improved earnings outlook for Kellogg, likely due to the corporate action, while acknowledging the improved outlook for General Mills (GIS) and the rest of the sector. The firm sees a “fair” sum-of-the-parts value post spinoff, which should take place at the end of this year.