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5 big analyst picks: Kellogg upgraded on 'seriously attractive' valuation

Published 23/06/2023, 10:48
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Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: upgrades at Kellogg, KB Home, Evotec, Principal Financial, and Ventas.

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Kellogg upgraded to Market Perform

Bernstein upgraded Kellogg (NYSE:K) to Market Perform from Underperform with a price target of $62.00, as reported in real time on InvestingPro.

According to the firm, the spin-off creates uncertainty, but the valuation is "seriously attractive", with the stock underperforming the rest of its U.S. Food peers by 15% following the divestment announcement one year ago. Kellogg is spinning off its North American cereal business, which it intends to complete by the end of 2023.Summer Sale Is Live!

KB Home upgraded following the Q2 beat

CFRA upgraded KB Home (NYSE:KBH) to Buy from Hold and raised its price target to $61.00 from $41.00 following the company’s reported Q2 results on Wednesday.

Q2 EPS of $1.94 and revenue of $1.77 billion came in significantly better than the consensus estimates.

CFRA sees revenue of $6.15B in fiscal 2023 and $6.44B in 2024, compared to $6.9B in 2022, supported by a quarter-over-quarter backlog increase of 4% to $3.4B and a tapering of cancellations to 21.8% from 36% in Q1.

3 more upgrades

Morgan Stanley upgraded Evotec (NASDAQ:EVO) to Overweight from Equalweight and raised its price target to $16.00 from $12.00.

Jefferies upgraded Principal Financial Group (NASDAQ:PFG) to Hold from Underperform and raised its price target to $65.00 from $60.00.

Raymond James upgraded Ventas (NYSE:VTR) to Strong Buy from Outperform with a price target of $55.00.

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