You Can't Control Spin-Offs, but You Can Control What You Do About Them
Wall Street loves a growth story, which is why so many companies focus on rapid top- and bottom-line expansion. To achieve this, however, sometimes big changes are needed, like spinning off a business or two.
That's the pitch behind the business split at Kellogg -- which is now Kellanova (NYSE: K) and WK Kellogg (NYSE: KLG) -- and Medtronic (NYSE: MDT), which is looking to jettison two slower-growing businesses. A quick comparison of these two situations is instructive for investors faced with a spin-off in a stock they own.
Image source: Getty Images.
Source Fool.com
Kellogg Co. Stock
€52.78
-0.230%
Currently there is a rather positive sentiment for Kellogg Co. with 3 Buy predictions and 0 Sell predictions.
As a result the target price of 66 € shows a positive potential of 25.05% compared to the current price of 52.78 € for Kellogg Co..
