Kellanova Co

K: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$84.00	Ymwmv	Jrsgkpnr

Kellogg: We Don’t Think Planned Split Paves Way for Sweeter Business Prospects, but Shares Are Tasty

Erin Lash , Grace Na

Aug 10, 2023

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.

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