Robert Dickerson, an analyst from Jefferies, reiterated the Buy rating on Post Holdings (POST – Research Report). The associated price target is $120.00.
Robert Dickerson has given his Buy rating due to a combination of factors, including Post Holdings’ strong financial performance and promising margin momentum. The company surpassed first-quarter consensus sales and EBITDA estimates by approximately 3% and 18%, respectively, showing margin outperformance in all business segments. This indicates a robust operational efficiency and an ability to exceed market expectations. Additionally, the pet segment is seeing margin improvements ahead of schedule, benefiting from favorable retail trends and lower-than-anticipated investment costs.
Furthermore, Dickerson’s optimism is bolstered by the Foodservice segment’s substantial EBITDA of $106 million, which exceeds the expected run rate of $95 million, even before accounting for incremental sales from ready-to-drink shake production. This growth speaks to the company’s volume growth and demand strength. Moreover, Post Holdings’ net debt is at its lowest in ten years, sitting around 4.5 times EBITDA, which reflects a healthier balance sheet and reduced financial risk. These positive financial indicators support the Buy rating, as they suggest the company is well-positioned for continued growth and profitability.
Dickerson covers the Consumer Defensive sector, focusing on stocks such as UTZ Brands, General Mills, and Kellanova. According to TipRanks, Dickerson has an average return of 4.0% and a 63.51% success rate on recommended stocks.
In another report released today, Piper Sandler also maintained 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:
- Post Holdings Announces $400 Million Share Buyback Plan
- Post Holdings Announces CEO Robert Vitale’s Return
- Post Holdings Reports Results for the First Quarter of Fiscal Year 2024; Raises Fiscal Year 2024 Outlook
- Post Holdings 2024 Virtual Shareholders’ Meeting Outcomes
- Post Holdings Inc Implements Key Corporate Amendments
