Goldman Sachs also raised the price target on the stock to $72 from $58, which represents a potential 15% upside over the stock's closing price Thursday of $62.84. Goldman's price target also is ahead of consensus sell-side price targets of $64.14.
The firm said that Kellogg will accelerate organic sales which will lead profit margins to improve. Goldman Sachs called Kellogg "the most compelling value left in snacks."
Kellogg shares have risen about 12% year to date, but the stock has declined more than 12% over the past 12 months.