Ralcorp Holdings (RAH) Shares Freeze Day After Gelit Acquisition; Barclays Sees More Upside

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Shares of Ralcorp Holdings Inc. (NYSE: RAH) jumped $1.16 yesterday after the company announced it was acquiring Gelit, a frozen food maker in Italy. However, today the stock is stuck in Neutral, currently at $65.52, up $0.01.

Well, Barclays analyst, Andrew Lazar, continues to like shares at the current level (his price target is $77). Lazar thinks an acquisition that is accretive in the first 12 months along will putting back nearly $1.00/share in non-cash amortization, shares are trading at a 15% vs. peer group. Also of note, Lazar added that Ralcorp is expected to monetize it's 20% ownership stake in Post (Nasdaq: POST), added up to another $0.18 to EPS.

Barclays maintains it's 'Overweight' rating on the stock.

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

Shares of Ralcorp Holdings Inc. closed at $65.51 yesterday, with a 52 week range of $61.85-$89.86.

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