In a report released yesterday, Marc Torrente from Wells Fargo maintained a Hold rating on Post Holdings (POST – Research Report), with a price target of $116.00.
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Marc Torrente has given his Hold rating due to a combination of factors impacting Post Holdings’ financial performance and outlook. The company reported stronger-than-expected EBITDA results despite facing challenges with softer sales volumes. However, the benefits from EBITDA gains were somewhat offset by anticipated near-term costs associated with AI, which Post Holdings aims to recover through improved pricing strategies in the second half of the year.
Marc Torrente also considered the company’s future prospects, such as the pending PPI acquisition, which could enhance sales and EBITDA if finalized. Despite these positive elements, the ongoing issues like decreased volumes in several segments and AI-related headwinds contributed to the Hold rating. The decision reflects a cautious stance, balancing potential growth opportunities against existing risks and uncertainties.
Based on the recent corporate insider activity of 77 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of POST in relation to earlier this year.