UBS Maintains a 'Buy' on Kellogg (K); Buying Solid Top Line Momentum
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Price: $83.44 --0%
Rating Summary:
6 Buy, 25 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
6 Buy, 25 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UBS maintains a 'Buy' on Kellogg (NYSE: K), raises PT from $59 to $63.
UBS analyst says, "We believe that Kellogg’s is poised for accelerating sales growth as the company implements ~5% pricing through the remainder of FY11. In our view, Kellogg’s industry leading baseline volume trends, strong innovation and cheap calorie category exposure implies less than average price elasticity, and this coupled with easing comparisons should result in robust top line growth in 2011 and into 2012...We believe that Kellogg’s top line momentum and history of outperformance during periods of inflation provides investors with earnings security - particularly in an environment in which price elasticity is a major concern."
"We think a premium multiple can be justified for Kellogg as ongoing revenue upside occurs, which could push Kellogg’s into a small group of consumer stocks defined by their earnings security in a world of inflation and slow recovery."
For more ratings news on Kellogg click here and for the rating history of Kellogg click here.
Shares of Kellogg closed at $56.76 yesterday.
UBS analyst says, "We believe that Kellogg’s is poised for accelerating sales growth as the company implements ~5% pricing through the remainder of FY11. In our view, Kellogg’s industry leading baseline volume trends, strong innovation and cheap calorie category exposure implies less than average price elasticity, and this coupled with easing comparisons should result in robust top line growth in 2011 and into 2012...We believe that Kellogg’s top line momentum and history of outperformance during periods of inflation provides investors with earnings security - particularly in an environment in which price elasticity is a major concern."
"We think a premium multiple can be justified for Kellogg as ongoing revenue upside occurs, which could push Kellogg’s into a small group of consumer stocks defined by their earnings security in a world of inflation and slow recovery."
For more ratings news on Kellogg click here and for the rating history of Kellogg click here.
Shares of Kellogg closed at $56.76 yesterday.
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