Kellanova Co
K: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$74.30 | Rqbqhw | Xpjjghh |
Kellogg: We Don’t Think Planned Split Paves Way for Sweeter Business Prospects, but Shares Are Tasty
After digesting separate blueprints for Kellogg’s soon-to-be split North American cereal (WK Kellogg) and global snack (Kellanova) arms during investor events on Aug. 9, we plan to maintain our $84 sum-of-the-parts valuation for the combined firm, which is based on respective EBITDA multiples of 9 and 16 times. Further, our wide moat is unchanged for the existing enterprise, reflective of the stout brand portfolio each segment houses.