Goldman Sachs upgraded shares of Kellogg (NYSE:K) to Buy, raising the 12-month price target to $83 from $78 in a note Tuesday.
Kellogg shares are up more than 2% at the time of writing, trading above the $67 mark.
Analysts said Kellogg stands out as a company that will be able to sustain increasingly scarce growth.
"Food companies have seen meaningful growth acceleration over the past few years, led by inflation-driven pricing," said the analysts. "Growth, however, is about to become scarce in the industry as price fades and volume growth remains lacking for most."
"K stands out as one of the few who will be able to sustain increasingly scarce growth given its favorable end-market exposure and strong business momentum."
However, the analysts noted that the stock is valued "among the prospective laggards," and they believe concern about stranded costs from its planned spin-out of its North American cereal business has created a buying opportunity, as it is "overshadowing the underlying growth outlook for the business."
"We see a stock mispriced for the growth potential it offers investors; we see opportunity to exploit the dislocation we believe this exacerbated concern has created and recommend investors buy this secularly advantaged growth stock on sale," the analysts concluded.