Benzinga | Jan 31, 2022 07:43AM EST

BMO Capital Downgrades This US Cereal Giant

* BMO Capital analyst Kenneth Zaslow downgraded Kellogg Co (NYSE:K) to Market Perform from Outperform with a price target of $70, down from $75, suggesting an upside of 7%.

* The analyst sees a lower probability of upside to consensus expectations given the ongoing challenges in U.S. cereal and industry-wide supply constraints.

* Zaslow notes soft U.S. cereal sales and incremental margin pressure may limit earnings upside.

* The analyst adds he may have underestimated the impact of Kellogg's union strike.

* Related Content: Kellogg's Workers End Strike, Union Says No Concessions Were Made

* Price Action: K shares closed higher by 0.14% at $65.26 on Friday.