Food manufacturer Kellogg’s (now Kellanova) (NYSE:K) cereal business, now known as ‘WK Kellogg Co’ (KLG), commenced trading on the New York Stock Exchange. WK Kellogg began trading at $13.80 per share following its spinoff from the parent company.
Following the separation of its businesses, Kellogg has been renamed ‘Kellanova’ and will house snacking brands like Pringles and Cheez-Its, along with its North American frozen food unit. Kellanova will continue to trade under the ticker ‘K’ while WK Kellogg has started trading as ‘KLG.’ KLG was sinking in morning trading on Tuesday. The separation, which was initially announced in June last year, reflected Kellogg’s response to changing consumer preferences as cereal sales were stagnating while there was a rising focus on snacking in between meals.
Following the listing of KLG, Goldman Sachs initiated coverage of the stock with a Sell rating and kept a price target of $11. Analysts at Goldman Sachs stated that while there was an opportunity for margin expansion for the company, it appeared that it was not earning according to its potential based on different benchmarking measures. Goldman Sachs further pointed out that the company’s productivity programs were hampered and could be delayed to FY26 due to a plant closure moratorium with unions since late 2021.
Is Kellogg a Buy or Sell Stock?
Meanwhile, when it comes to Kellogg or Kellanova, Wall Street analysts remain sidelined about K stock with a Hold consensus rating based on two Buys, nine Holds, and one Sell.
