4 big analyst picks: Kellogg upgraded at Goldman on undervalued growth potential

Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: upgrades at Kellogg, Guidewire, Alliant Energy, and Century Communities.

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Kellogg upgraded at Goldman Sachs

Kellogg (NYSE:) shares rose more than 1% premarket today after Goldman Sachs upgraded the company to Buy from Neutral and raised its price target to $83.00 from $79.00, noting the stock is mispriced for the growth potential it offers investors.

According to the firm, Kellogg stands out as one of the few food companies that will be able to sustain increasingly scarce growth due to its favorable end-market exposure and strong business momentum. Despite this, the company’s value is currently underestimated compared to its peers.

The bank believes that concerns about stranded costs resulting from the planned spin-out of its North American cereal business have created a buying opportunity, as it is overshadowing the underlying growth potential of the business.

Last week, the company was upgraded by Bernstein, which noted that the valuation is “seriously attractive”.

Guidewire upgraded to Buy as Cloud transition shows promising momentum

Stifel upgraded Guidewire Software (NYSE:) to Buy from Hold and raised its price target to $85.00 from $75.00, as reported in real time on InvestingPro. Shares gained more than 2% premarket today.

Following its recent survey of P&C Insurers to understand their vendor relationships, perspectives on Guidewire specifically, plans around cloud adoption, and spending intentions, Stifel said that Guidewire appears to have effectively navigated its cloud transition.

According to the firm, the gradual industry acceptance of cloud technology, coupled with a better product, is likely to position Guidewire favorably for long-term expansion in the P&C Insurance market.

Furthermore, encouraging recent traction in cloud sales and go-lives suggests a potential for improving profit margins.

2 more upgrades

BofA Securities upgraded Alliant Energy (NASDAQ:) to Buy from Neutral and raised its price target to $58.00 from $55.00.

B. Riley upgraded Century Communities (NYSE:) to Buy from Neutral with a price target of $82.00.

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