Stifel has adjusted its price target for Kellanova (NYSE: K), increasing it to $83.50 from the previous $76.00 while maintaining a Hold rating on the stock. This revision follows the announcement of an acquisition agreement 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 according to Stifel's 2025 estimate. The total valuation of the deal is approximately $35.9 billion.
Kellanova's board of directors has given its approval for the offer from Mars, with the completion of the deal contingent on the consent of the company's shareholders. Notably, significant shareholders including the Gund Family and the W.K. Kellogg (NYSE:K) Foundation Trust, which together account for over 20% of the voting power, have expressed their support for the acquisition by Mars.
Mars has agreed to acquire Kellanova for $83.50 per share in cash, a deal valued at $35.9 billion. This merger, set to close in the first half of 2025, will unite two significant players in the global snacking industry. Kellanova reported net sales exceeding $13 billion in 2023, showcasing strong financial performance. Post-acquisition, Kellanova will be integrated into Mars Snacking, headquartered in Chicago.
Several analyst firms have revised their outlooks on Kellanova. Goldman Sachs initiated coverage on Kellanova's stock with a Neutral rating, while BofA Securities upgraded Kellanova's stock from Neutral to Buy. CFRA, DA Davidson, and Piper Sandler also revised their price targets upward.
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