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Post Holdings’ Strong Financial Performance and Growth Prospects Justify Buy Rating

Post Holdings’ Strong Financial Performance and Growth Prospects Justify Buy Rating

Stifel Nicolaus analyst Matthew Smith, CFA has maintained their bullish stance on POST stock, giving a Buy rating yesterday.

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Matthew Smith, CFA has given his Buy rating due to a combination of factors that highlight Post Holdings’ strong financial performance and positive outlook. The company reported a notable increase in EBITDA for the first quarter of 2025, surpassing estimates and reflecting robust growth in its Consumer Brands and Foodservice segments. The uplift in Foodservice volumes, supported by distribution gains, underscores the resilience and potential for sustained growth in this segment.
Furthermore, Post Holdings has revised its fiscal year 2025 guidance upward, anticipating EBITDA growth in the range of 1% to 4%. This optimistic outlook is bolstered by the expected recovery of costs related to avian influenza, alongside strategic investments in network optimization and capacity expansion. The company’s strong balance sheet and share repurchase activities also indicate confidence in its future performance. These elements collectively support the Buy rating, with a target price set at $130, suggesting continued strength in the stock’s valuation.

In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $125.00 price target.

POST’s price has also changed slightly for the past six months – from $111.770 to $105.860, which is a -5.29% drop .

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