WK Kellogg downgraded to Sell at TD Cowen on lower organic growth estimates

As previously reported, TD Cowen downgraded WK Kellogg (KLG) to Sell from Hold with a price target of $16, down from $18. While the firm acknowledges “a lot of opportunity” for WK Kellogg to improve its impaired margin structure, it still has concerns about its competitiveness in the breakfast cereal category, the risk of business disruption during its supply chain modernization and “unwanted attention from the MAHA initiative” regarding health and wellness, the analyst tells investors. The firm lowered its 2025 and 2026 organic growth estimates to down 1.5% in each year versus consensus forecasts of down 0.6% and down 1.0%, respectively.