WK Kellogg dips after BofA cuts to 'underperform' on lackluster volumes

WK Kellogg Co

10/07/2024 13:03

** Shares of Froot Loops maker WK Kellogg  KLG.N  down ~2%
at $15.73 premarket
    ** Brokerage BofA Global Research downgrades to
"underperform" from "neutral" citing weaker category and
industry trends
    ** Lowers price objective to $17 from $24, notes volume
trends in the packaged food industry "have yet to show any
meaningful improvement"
    ** Expects industry trends to remain sluggish for KLG over
the next 12 months "unless a more full-scale promotional/price
investment reset is contemplated"
    ** Lackluster volume recovery could lead KLG to have to
reinvest more heavily, which stunts margin expansion in the
short run to help stabilize volumes - Peter Galbo analyst with
BofA Global Research
    ** Six of nine brokerages rate the stock "hold" and three
"sell"; their median PT is $22.50 - LSEG
    ** Up to last close, stock rose nearly 23% YTD

 (Reporting by Anuja Bharat Mistry in Bengaluru)
 ((AnujaBharat.Mistry@thomsonreuters.com;))