Kellogg Company (NYSE: K) is a leading global cereal, cookie, cracker, and other packaged food manufacturer and marketer. Its products are made in 21 countries and sold in over 180 different nations. Special K, Frosted Flakes, Froot Loops, Rice Krispies, Pop-Tarts, Eggo, Kashi, and Morningstar Farms are among the company's well-known brands.
Why should Investors Book Profits?
Valuation Methodology: EV/Sales Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's FY1 trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
Kellogg's share price has been relatively stable throughout the year, slightly increased by 3.87% in the past week and is currently trading around the higher band of the 52-week range of USD 59.54 to USD 68.60. We have valued the stock using the EV/Sales based relative valuation methodology and arrived at a target price of USD 60.00.
Considering the decline in margins, collapse in liquidity, highly leveraged balance sheet, current valuation, and other technical indicators, we recommend a "Sell" rating on the stock at the closing price of USD 66.55, up 1.16% as of April 06, 2022.
Three-Year Technical Price Chart (as of April 06, 2022). Source: REFINITIV, Analysis by Kalkine Group
* The reference data in this report has been partly sourced from REFINITIV.
* All forecasted figures and industry information have been taken from REFINITIV.