03:20 PM EDT, 05/02/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target $5 to $65, 18.1x our 2024 EPS of $3.59 (up from $3.57; 2025 cut to $3.55 from $3.79). This multiple is a premium to the overall packaged foods space but is more in line with snacking-focused companies. Q1 adj-EPS of $1.04 (+33% Y/Y) smashed the $0.85 consensus, with adj-operating margins rising 380 bps Y/Y to 15.8%. Yet, about 250 bps of this increase was due to two discrete items: 1) the TSA reimbursement with WK Kellogg (about 150 bps), and 2) currency-related mix shifts (about 100 bps). Excluding these items, margins were still strong, with North America operating profits growing ~20% Y/Y. Volumes remained soft, but did improve compared to Q4 (excluding AMEA, which was negatively impacted by the Nigerian currency devaluation). We expect volumes to improve throughout 2024. Our Hold opinion reflects uncertainty in the next year (2025), as K won't likely receive the TSA benefit, but at the same time should face lower costs, including less stranded overhead related to the spin-off.