Kellanova bid would further validate power of brands, says Stifel

Stifel analyst Matthew Smith notes the news reports that Mars is considering a bid for Kellanova and believes such a transaction would “further validate the power of Kellanova’s brands and growth potential, both in North America and internationally.” The firm believes the pipeline for potential M&A of packaged foods businesses is very full, but with a limited number of completed transactions it also believes valuation spreads “remain wide, with a focus on upcoming potential deals to break the dam.” The firm has a Hold rating on Kellanova shares.