Analysts maintain “hold” ratings
Most of the analysts covering the Kellogg Company (K) maintain “neutral” outlooks on the stock. Kellogg’s performance in the first half was impressive. The company has also raised its full-year sales and earnings guidances, which is encouraging. Analysts expect the company’s bottom line to return to solid growth in the fourth quarter after a slowdown in the third quarter.
Meanwhile, Kellogg’s consolidation of Multipro and acquisition of RXBAR are expected to support its net sales growth in 2018. However, soft organic sales and pressure on its margins could continue to hurt its stock. Kellogg stock has marked sharp growth in the past few months, indicating that the positives are already priced in.
Rating and target price
Among the 20 analysts providing ratings on Kellogg stock, 11 have given it “hold” recommendations, six have given it “buy” recommendations, and three have given it “sell” recommendations. Analysts have a consensus target price of $73.41 on Kellogg stock, indicating a potential upside of 2.7% based on its closing price of $71.45 on October 24.
Wall Street analysts have also given “neutral” outlooks on the majority of food stocks, including the Hershey Company (HSY), General Mills (GIS), and the J.M. Smucker Company (SJM). They’ve given Campbell Soup Company (CPB) a “sell” recommendation.