UPDATE: Goldman Sachs Upgrades Kellogg (K) to Neutral

Goldman Sachs upgraded Kellogg (NYSE: K) from Sell to Neutral with a price target of $90. Analyst Jason English said margin optionality is too large to ignore.

"Following incremental analysis we raise our FY16/FY17/FY18 estimates by 0.5%/2.7%/4.1%. We believe a compelling bull margin case can be constructed with substantial improvement in the profitability of its core business, but we believe this is unlikely to be achieved with management’s focus on top-line growth and diversification rather than on the full margin opportunity we see. As such, we believe this bull case will remain out of reach, but the optionality is too great for us to stay Sell rated and we upgrade the stock to Neutral," said English.

For an analyst ratings summary and ratings history on Kellogg click here. For more ratings news on Kellogg click here.

Shares of Kellogg closed at $75.09 yesterday.

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