WK Kellogg On Strong Growth Trajectory

Our fair value estimate for WK Kellogg Co. (Spin-Off) stands at $23.00 (Previously $12.50) per share based on a 2024e EV/ EBITDA multiple of 9.0x (~3% discount to peer median multiple of 9.3x). We maintain a 'Hold' rating on WK Kellogg Co. with an implied upside of 5.6% from the current market price of $21.77 as of 5/10. The upgrade in our target price is due to the stable top-line performance, with improved margins since 4Q23 results. The company raised its FY24 guidance in its 4Q and FY23 results on the b ...