Wells Fargo Upgrades Kellogg to Outperform (K)

Wells Fargo is out with its report today on Kellogg

, upgrading K from Market Perform to Outperform. In a note to clients, Wells Fargo writes, "We are upgrading shares of Kellogg to Outperform from Market Perform and are raising our 12-month valuation range to $58-60 from $51-53. We expect Kellogg's shares to appreciate as earnings surprise to the upside driven by a faster-than-expected recovery in its core North American retail cereal business. Raising our 2011E EPS to $3.50 from $3.40 (versus $3.46 consensus) and our 2012 estimate from $3.75 to $3.85 (versus $3.79 consensus) as a result." At the time of posting, shares of K were trading at $53.37, up 1.62% from Thursday's close.