BMO Capital Downgrades This US Cereal Giant

  • BMO Capital analyst Kenneth Zaslow downgraded Kellogg Co K to Market Perform from Outperform with a price target of $70, down from $75, suggesting an upside of 7%.
  • The analyst sees a lower probability of upside to consensus expectations given the ongoing challenges in U.S. cereal and industry-wide supply constraints.
  • Zaslow notes soft U.S. cereal sales and incremental margin pressure may limit earnings upside.
  • The analyst adds he may have underestimated the impact of Kellogg's union strike.
  • Related ContentKellogg's Workers End Strike, Union Says No Concessions Were Made
  • Price Action: K shares closed higher by 0.14% at $65.26 on Friday.
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