Jefferies analyst Robert Dickerson reiterated a Buy rating on Post Holdings (POST – Research Report) today and set a price target of $112.00.
Robert Dickerson has given his Buy rating for Post Holdings due to a range of factors. These include robust sales and EBITDA figures for Q4 which surpassed prior preliminary consensus by 1% and 9% respectively, indicating a continuing margin advantage even in the face of volume pressures. Additionally, management’s reassessment of the quarterly Foodservice EBITDA run rate to $95mm, along with the anticipation of low teens EBITDA margin on the Pet segment, further strengthened his positive outlook.
Moreover, Dickerson remains optimistic about the company due to the potential synergy and margin benefits from the pet segment and a leverage that is currently below 5x, the lowest since 2017. The EV/EBITDA multiple is also about 12% lower than its five-year average. These factors collectively explain why Dickerson recommends a Buy for Post Holdings.
In another report released today, Stifel Nicolaus also maintained a Buy rating on the stock with a $98.00 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:
- Post Holdings Reports Results for the Fourth Quarter and Fiscal Year 2023
- Post Holdings sees FY24 adjusted EBITDA $1.2B-$1.26B
- Post Holdings reports Q4 adjusted EPS $1.63, consensus $1.34
- Post Holdings Provides Additional Details Regarding the Fourth Quarter Fiscal 2023 Conference Call
- POST Upcoming Earnings Report: What to Expect?
