Post Holdings initiated with an Overweight at JPMorgan

JPMorgan initiated coverage of Post Holdings with an Overweight rating and $100 price target. Post is a leading maker of cereal, pet food, side dishes, eggs, and other food products, with a relatively high exposure to private label, the analyst tells investors in a research note. The firm says the company is differentiated in that it participates in portfolio transformation as a matter of course, is comfortable with some leverage, and acts as a holding company for subsidiaries. Post generates strong cash flow, which may be applied in large quantities to reduce debt and buy back stock over the next two years, JPMorgan contends.