Shares of WK Kellogg Co. (KLG) plummeted 5.58% in pre-market trading on Wednesday, following a downward revision of the company's price target by Morgan Stanley. The investment bank cut its target price for WK Kellogg from $18 to $17, maintaining its underweight rating on the stock.
The revised price target appears to have sparked a sell-off among investors, contributing to the significant drop in WK Kellogg's stock price. This move by Morgan Stanley aligns with the broader negative sentiment surrounding the company, as reflected in the average analyst rating of "underweight" for KLG stock.
According to data from FactSet, the mean price target for WK Kellogg stands at $16.78, suggesting limited upside potential from current levels. The combination of Morgan Stanley's lowered expectations and the overall cautious stance from Wall Street analysts seems to be weighing heavily on investor confidence, leading to the sharp decline in the company's share price during early trading.
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