Long-Term Decline In Cereal Market Poses Structural Challenges For Kellogg, Analyst Says

J.P. Morgan analyst Ken Goldman rated WK Kellogg (NYSE:KLG) Neutral with a $19 price target after Q1 EPS of $0.20 missed estimates. Revenue fell short at $663M vs. $679.49M forecast. KLG cut its 2025 outlook, projecting a 2–3% drop in organic net sales and flat to lower EBITDA. Ongoing cereal category struggles, rising capex, and tariff risks justify a valuation discount, the analyst noted.