Post Holdings (POST – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst on November 6. Analyst Jason English from Goldman Sachs remains neutral on the stock and has a $107.00 price target.
Jason English has assigned a Buy rating to Post Holdings based on a variety of factors. Despite the recent announcement that the CEO will be taking a sudden medical leave, the company’s strong preliminary results for the fourth quarter of 2023, along with a promising outlook for the fiscal year of 2024, contributed towards this rating. The strong performance across the company’s Consumer and Foodservice businesses, particularly the robust pet food results, are cited as reasons for the expected performance.
Furthermore, the company expects its adjusted EBITDA for the fiscal year 2024 to be slightly above the consensus. This financial position, in combination with the company’s announcement of an approximate 15% beat on 4Q EBITDA, should serve to mitigate some of the investor concerns brought about by the CEO’s unexpected departure. However, English acknowledges potential risks such as a possible shift from over-earning to under-earning in Post Holdings’s Foodservice sector and execution risks related to recent acquisitions. Despite these potential headwinds, the anticipated growth across the retail business and pet food segments come across as key drivers behind the Buy rating.
In another report released yesterday, Piper Sandler also reiterated a Buy rating on the stock with a $115.00 price target.
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Post Holdings (POST) Company Description:
Post Holdings, Inc. is a consumer packaged goods holding company, which engages in operating of centre-of-the-store, refrigerated, foodservice, food ingredient, active nutrition, and private brand food categories. It operates through the following segments: Post Consumer Brands, Weetabix, Refrigerated Food, Active Nutrition, and Foodservice. The Post Consumer Brands segment manufactures, markets, and sells branded and private label RTE cereal and hot cereal products. The Weetabix segment focuses in the marketing and distribution of branded and private label RTE cereal products. The Refrigerated Food segment produces and/or distributes egg products, sausage, side dishes, cheese, and other refrigerated products to retail and foodservice customers. The Active Nutrition segment markets and distributes ready-to-drink beverages, bars, powders, and other nutritional supplements. The Foodservice segment includes egg and potato products. The company was founded by Charles William Post in 1895 and is headquartered in St. Louis, MO.
Read More on POST:
- BellRing announces Executive Chairman Vitale to take medical leave of absence
- Post Holdings’ President, CEO Vitale to take medical leave of absence
- Post Holdings sees 2023 adjusted EBITDA $1.2B-$1.26B
- Post Holdings reports preliminary Q4 revenue $1.9B, consensus $1.94B
- Post Holdings price target lowered to $98 from $106 at Stifel
