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What Do Analysts Recommend for Kellogg after Fiscal 2Q16 Results?

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Analysts’ recommendations for Kellogg

In this part of the series, we’ll see what analysts’ recommendations and target prices are after Kellogg Company’s (K) fiscal 2Q16 earnings. On August 5, 2016, Kellogg (K) was trading at $82.71. The ratings for Kellogg’s stock are the same, but the target price has risen by 6%. Currently, ~74% of analysts rate Kellogg a “hold,” and 9% rate it a “sell.” Only 17% rate it a “buy.”

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Recommendations and target prices

The average broker target price for Kellogg for the next 12 months has risen to $83.93 from $79. This is 1.4% higher than the closing price of $82.71 on August 5. Regarding individual recommendations, Credit Suisse gave Kellogg the highest target price of $94. This target price represents a rise of 14% from the closing price on August 5. The firm rated the stock a “strong buy.”

Below are the target prices and return potentials for Kellogg’s peers:

  • General Mills (GIS) has a target price of $39.71 and a return potential of 16%.
  • Mondelez International (MDLZ) has a target price of $50.31 and a return potential of 16%.

These stocks are all part of the Guggenheim S&P 500 Equal Weight Consumer Staples ETF (RHS). RHS invests 2.7% of its holdings in Kellogg, 2.7% of its holdings in General Mills, and 2.7% of its holdings in Mondelez International. The PowerShares S&P 500 Quality Portfolio (SPHQ) invests ~1.1% of its holdings in Kellogg.

Buckingham Research Group raised its target price to $92 from $85 after 2Q16 earnings. It still rates Kellogg a “strong buy.” RBC Capital Markets also raised its target price to $86 from $82. It rates the stock a “hold.”

Barclays and Morgan Stanley assigned Kellogg the lowest target price of $79 each. This is 4% lower than the closing price on August 5. Barclays rated it a “strong sell,” while Morgan Stanley rated it a “hold.” Stifel and Argus Research Group haven’t provided target prices for the stock.

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