KeyBanc Starts Post Holdings (POST) at Overweight

KeyBanc initiated coverage on Post Holdings (NYSE: POST) with an Overweight rating and a price target of $90. Analyst Brett Andress see 20% upside.

"We view POST as one of the more interesting stories in our coverage, with the most upside potential (20%) owing to several unique earnings drivers: 1) scale that is inflecting after years of aggressive platform building, with improving FCF adding to visibility; 2) the potential for significant unannounced synergy upside to MOM Brands, POST's most recent acquisition; 3) a compelling self-help margin story unfolding within POST's Active Nutrition segment; and 4) exposure to the unique Michael Foods asset, which, while currently over-earning, represents a significant long-term platform," said Andress.

"We note that investors are signing up for a bestin-class management team with an appetite for leverage and continued M&A (sitting on $870M cash), raising POST's relative risk profile," he added.

For an analyst ratings summary and ratings history on Post Holdings click here. For more ratings news on Post Holdings click here.

Shares of Post Holdings closed at $74.72 yesterday.

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