WK Kellogg initiated with an Underweight at Barclays

Barclays initiated coverage of WK Kellogg with an Underweight rating and $11 price target. The analyst sees the next of couple of years as a “likely challenging transition” period for WK Kellogg, in light of a flat sales outlook in a declining ready-to-eat cereal category. The company also faces front-end-loaded capital needs following years of underinvestment and a back-end-loaded margin expansion/cash flow generation profile, the analyst tells investors in a research note.