Citi retains "buy" for K, raises estimates

Citi maintains its “buy“ rating for Kellogg (NYSE: K), while raising its earnings estimates for the company. The target price for K is set to $63.

Citi continues to be confident about K’s ability to grow in 2010. The results from K’s three-year cost reduction program have exceeded expectations and may drive the company’s 2010 EPS, according to Citi. Despite continuous challenging economic trends, K expects good volume growth in 2010, driven by competitive pricing and cost savings. Citi has raised its EPS estimate for 2010 from $3.60 to $3.62.