J.P. Morgan Increases PT On Kellogg To $62, Maintains Overweight (K)

J.P. Morgan increased its price target on Kellogg

from $57 to $62, while reiterating an Overweight rating, in a research report published today. J.P. Morgan made an upgrade in spite of Kellogg missing its Q1 earnings per share target. In the report, J.P. Morgan States, "A rejuvenated U.S. cereal category bodes well, as do the stronger sales seen in Q1. Granted, a one-time compensation issue should limit growth – even with a likely $0.09 currency contribution – to low-single digits this year, as evidenced by our downwardly revised 2011 estimate of $3.41. But given the likelihood of better U.S. results, at least some improvement in the U.K. and Australia, and the lapping of the compensation issue next year, we believe investors will soon begin focusing on a strong 2012. Our $3.82 estimate implies 12% growth. We reiterate our Outperform on the K shares, and raise our December 2011 target to $62, based on a 16x multiple on 2012E earnings." In today's trading, Kellogg added 0.63% to its value to stand at $57.12.