Analyst Jason English of Goldman Sachs reiterated a Buy rating on Post Holdings (POST – Research Report), with a price target of $111.00.
Jason English’s Buy rating for Post Holdings is attributed to a multitude of factors. Firstly, Post Holdings recently reported robust results, leading to a 5% increase in EBITDA estimates for FY24 and FY25. This growth is largely due to a surge in earnings from the company’s newly acquired pet food division and positive mix effects in its food service sector. Moreover, the company’s forecast for enhanced top line performance in its Weetabix and US refrigerated retail businesses is encouraging, particularly as supply chain issues seem to be resolving and investment is being reinstated.
Additionally, the valuation of POST appears attractive, given its 9.6X EV/EBITDA and 7.4% FCF yield based on FY24 estimates, suggesting noteworthy value relative to its fundamental outlook. The company’s 4Q23 EBITDA was also reported above estimates, with the Consumer Brands’ organic sales rising by 2.7% year over year. The pet food sector has been performing well, although the company has warned of increased investments that might affect profitability in FY24. Lastly, the Weetabix business has seen a 15.5% sales growth, primarily driven by pricing and FX tailwinds, suggesting the company’s diversified portfolio is delivering results.
According to TipRanks, English is a 3-star analyst with an average return of 0.5% and a 51.49% success rate. English covers the Consumer Defensive sector, focusing on stocks such as Clorox, Mondelez International, and Nomad Foods.
In another report released on November 20, 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?
