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Investing.com - DA Davidson has reiterated its Neutral rating and $83.50 price target on Kellanova (NYSE:K), maintaining alignment with the pending Mars acquisition price. The $27.8 billion market cap company, known for its stable performance with a beta of just 0.29, is currently trading near InvestingPro’s Fair Value estimate.
The food company’s second quarter earnings missed both DA Davidson’s and consensus estimates, with nine analysts recently revising their earnings expectations downward according to InvestingPro data. The firm acknowledged that quarter-to-quarter forecasting has become more challenging without guidance during the acquisition process.
Despite the earnings miss, Kellanova reported that its second quarter adjusted EBIT and EPS exceeded the company’s internal expectations, according to information in the press release.
DA Davidson noted that Kellanova’s organic net sales continue to decelerate, reflecting broader softness observed throughout the industry.
The Mars-Kellanova acquisition, which influenced DA Davidson’s maintained price target of $83.50, is now expected to close toward the end of the year rather than earlier projections.
In other recent news, Kinross Gold (NYSE:KGC) Corporation announced a quarterly dividend of $0.03 per share for the second quarter of 2025. This dividend will be distributed to shareholders on September 4, 2025, with the record date set for August 21, 2025. Meanwhile, the European Union has paused its antitrust review of Mars’ $36 billion acquisition of Kellanova due to pending data from both companies. This suspension is part of the EU’s regulatory process to ensure fair competition within its member states. Kellanova is also making strides in its ingredient transformation by planning to remove FD&C colors from all U.S. foods by the end of 2027. The company reports that a significant portion of its North American retail and K-12 foods are already free of these colors. In light of the ongoing EU investigation, Bernstein has reiterated a Market Perform rating for Kellanova, citing minimal competition overlap between Kellanova and Mars. These developments highlight significant corporate activities and regulatory considerations for investors.
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