In a report released yesterday, Matthew Smith, CFA from Stifel Nicolaus maintained a Buy rating on Post Holdings, with a price target of $130.00.
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Matthew Smith, CFA has given his Buy rating due to a combination of factors including Post Holdings’ strategic divestiture of its pasta business, which is expected to enhance EBITDA stability and free cash flow. The sale of the pasta business, which was less synergistic and more commoditized, allows Post to focus on more profitable segments while maintaining a favorable acquisition multiple.
Additionally, the company has approved a substantial $500 million share repurchase program, indicating strong confidence in its financial health and future prospects. The divestiture and share repurchase are expected to improve leverage and provide significant value to shareholders, with the stock trading at attractive multiples that do not fully reflect its cash flow generation and growth potential. These strategic moves support the Buy rating and a target price of $130.
In another report released on August 29, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $125.00 price target.