Wells says Post acquisition of Potato Products makes Lamb Weston deal less likely

Wells Fargo analyst Marc Torrente notes that Post Holdings (POST) announced the acquisition of Potato Products of Idaho. While the transaction is relatively small, it makes the speculated deal for Lamb Weston (LW) less likely, while not impossible. Lamb Weston shares are trading lower after hours, Wells points out. The firm still believes Post remains well-positioned to pursue additional M&A opportunities, with a “very deep” pipeline while maintaining a disciplined approach to valuation and strategy. Wells has an Equal Weight rating on Post with a price target of $116 on the shares.