UPDATE: Nomura Raises Price Target On Kellogg Company On 2015 Outlook

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In a report published Wednesday, Nomura analyst David Hayes reiterated a Buy rating on
Kellogg CompanyK
, and raised the price target from $69.00 to $74.00. In the report, Nomura noted, “We cut our 2015E EPS by 1%, reflecting mostly forex. We see early signs of unhelpful consumer trends (non-diet and low carb) coming off their peak. We expect organic sales to be mildly positive (+1.5% vs -1.6% 2014E), which we think could be a major development for the multiple. Gross margin should benefit from benign input costs in 2015; we see sentiment poised to improve on the restructuring execution outlook. Actions to improve the sales growth outlook were postponed in 2014, as the early response to initiatives was muted and new managerial roles were put in place. We regard this as an attractive entry point given the prospect of margin expansion from a well-planned cost-saving programme, coupled with the prospect of some recovery in sales.” Kellogg Company closed on Tuesday at $65.97.
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Posted In: Analyst ColorPrice TargetAnalyst RatingsDavid HayesNomura
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