Anika Begay
Stifel revised its price target on Kellanova (NYSE: K), increasing it to $83.50 from $76.00, while maintaining a Hold rating on the stock. The revision follows the announcement of an acquisition deal between Mars and Kellanova.
The proposed all-cash transaction would purchase Kellanova shares at $83.50 each, which is based on a 15x EV/EBITDA multiple as per Stifel’s 2025 estimate. The total valuation of the deal is approximately $35.9 billion.
Kellanova’s board of directors has given its approval to Mars’ offer, with completion of the deal contingent on the consent of the company’s shareholders. In particular, significant shareholders including the Gund family and the W.K. Kellogg (NYSE:) Foundation Trust, which together represent more than 20% of the voting power, have expressed their support for Mars’ acquisition.
Mars has agreed to acquire Kellanova for $83.50 per share in cash, a deal valued at $35.9 billion. The merger, expected to close in the first half of 2025, will unite two major players in the global snacking industry. Kellanova reported net sales of more than $13 billion in 2023, demonstrating strong financial performance. Following the acquisition, Kellanova will be integrated into Chicago-based Mars Snacking.
Several analyst firms have revised their outlooks on Kellanova. Goldman Sachs initiated coverage on Kellanova shares with a Neutral rating, while BofA Securities upgraded Kellanova shares from Neutral to Buy. CFRA, DA Davidson, and Piper Sandler also raised their price targets.
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