Kellogg is upgraded to Neutral at JPMorgan with risk seen as baked in
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JPMorgan upgraded Kellogg Company (NYSE:K) to a Neutral rating from Underweight after taking in the beat-and-raise quarter from the packaged food giant.
Analyst Ken Goldman noted that fundamentals are improved for Kellogg (K) and many risks that previously worried the Street, such as pension income and interest expense, are now baked into the share price. However, Kellogg's (K) margins are noted to still remain below average for the food peer group and the upcoming spin-off is seen carrying risks that other food companies don’t have.
JPMorgan assigned a price target of $72 to Kellogg (K) on a sum-of-the-parts valuation.
Shares of Kellogg (K) gained 0.67% premarket to $70.76.