Analyst John Baumgartner of Mizuho Securities maintained a Buy rating on Post Holdings (POST – Research Report), with a price target of $110.00.
John Baumgartner has given his Buy rating due to a combination of factors that indicate a strong start for Post Holdings in FY24 and potential for continued upside. The company’s first quarter EBITDA significantly surpassed expectations, with notable contributions from the Post Consumer Brands and Refrigerated Retail segments, which may benefit from sustained cost synergies and manufacturing cost tailwinds. Moreover, the Foodservice segment avoided any negative surprises, returning to more normalized levels of EBITDA, and the reappointment of CEO Robert Vitale bodes well for the company’s future. Post Holdings is also engaging in increased M&A activity and trading at a discount compared to its peers, presenting a favorable risk/reward scenario.
Further underpinning Baumgartner’s Buy rating is the overall positive performance across Post Holdings’ segments, with Refrigerated Retail sales exceeding forecasts and segments like Weetabix showing sequential margin improvements. The company has adjusted its EBITDA guidance upwards for the remainder of the year in response to these strong results, and a new share repurchase authorization has been put into place. These elements, combined with the company’s capacity to execute on strategic initiatives and maintain a robust financial outlook, contribute to the rationale behind the Buy recommendation.
Baumgartner covers the Consumer Defensive sector, focusing on stocks such as BellRing Brands, Post Holdings, and SunOpta. According to TipRanks, Baumgartner has an average return of 10.4% and a 67.50% success rate on recommended stocks.
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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 raises FY24 adjusted EBITDA view to $1.29B-$1.34B from $1.22B-$1.28B
- Post Holdings reports Q1 adjusted EPS $1.69, consensus $1.10
