In a report released today, Timothy Ramey from Pivotal Research maintained a Buy rating on Post Holdings Inc (NYSE: POST), with a price target of $120. The company’s shares opened today at $87.28.
Ramey noted:
“We expect capacity adds in the 1Q19 to allow the business to grow even faster. Active Nutrition sales surged 14.7% to $216.4 mm (PVTL $217mm/ Street $214 mm). EBITDA was fantastic at $46.7 mm, up 36.2% (PVTL $39.1mm/Street $39.6 mm). Shake product sales grew 34%; bar products and powder declined slightly. Private Brands sales rose 8.7% to $209.1 mm (PVTL $211.5mm/Street $204.1mm). EBITDA fell 1.6% to 24.7mm (PVTL $25.4mm/Street $25.7mm). Volume grew 0.8%. This business had negative mix and some cost-side pressures. VALUATION: We are raising our price target to $120 from $105 or about 11.5x pro- forma EVEBITDA (for the receipt of $875 million of cash, $500 mm of FY19 FCF and subtraction of $104 mm of EBITDA). EV/EBITDA POST remains crazy cheap relative to peers with growth that is far better than its peers.”
According to TipRanks.com, Ramey is a 5-star analyst with an average return of 12.6% and a 68.4% success rate. Ramey covers the Consumer Goods sector, focusing on stocks such as Constellation Brands Inc, Brown-Forman B, and Flowers Foods.
Currently, the analyst consensus on Post Holdings Inc is a Strong Buy with an average price target of $106.67, a 22.2% upside from current levels. In a report issued on July 23, Wells Fargo also maintained a Buy rating on the stock.
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The company has a one-year high of $94.65 and a one-year low of $70.66. Currently, Post Holdings Inc has an average volume of 640.8K.
Based on the recent corporate insider activity of 33 insiders, corporate insider sentiment is negative on the stock.
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Post Holdings, Inc. engages in the manufacturing, marketing, and distribution of branded and private label ready-to-eat cereals products. It operates through the following segments: Post Consumer Brands, Michael Foods Group, Active Nutrition, and Private Brands.
