WK Kellogg Stock Drops After Bank of America Turns Bearish on It

Shares of Rice Krispies and Special K shaper WK Kellogg (KLG) slipped Wednesday aft Bank of America Securities put a bearish standing connected nan cereal company’s shares.

Kellogg’s banal was precocious down 2.5% to $15.72 aft nan bank’s analysts trim their rating connected nan banal to "underperform" from "neutral" and their value target to $17 from $24.

The analysts cited “sluggish” manufacture trends, noting falling quarterly sales and soft guidance from competitor General Mills (GIS). That could lead to much advertizing and merchandise promotions, straining margins, they said. 

Future Margin Growth Questioned

Kellogg’s “value creation communicative lies successful meaningful 2026 separator description which now seems little assured,” nan analysts wrote. 

The institution successful May reaffirmed its 2024 guidance, pointing investors toward adjusted nett income coming successful for nan afloat twelvemonth successful a scope of a 1% diminution to 1% growth. 

Shares of General Mills were up 1% precocious Wednesday.