Piper Sandler on Post Holdings (POST): 'We See Upside From Lower Egg Prices'

Piper Sandler analyst Michael Lavery reiterated an Overweight rating and $140.00 price target on Post Holdings (NYSE: POST).

The analyst commented: "We see upside to our F2Q25 EBITDA estimate from lower egg prices. When we last caught up with POST (note, here), we had expected the worst regarding egg prices, which had risen sharply. However, in March, egg prices fell dramatically, driving a one-month tailwind in F2Q25. We had expected POST was likely at the high end of its $30-50M EBITDA headwind guidance in F2Q25 (from egg costs), though this now likely looks overdone. We now believe our ~$315M F2Q25E total company EBITDA estimate is likely beatable, and consensus of ~$329M looks more appropriate (see note, here). Prices have stabilized in April (down -46% sequentially vs. F2Q25) and are at the lowest level in five months, potentially driving further F3Q25 tailwinds. POST's Pet and Cereal businesses also benefit from consumers trading down. In Pet, mix shifts and TDP losses are headwinds, but Nutrish relaunch is underway. Assuming the brand refresh for Nutrish is effective, everything remains on track towards the full year outlook."

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 $115.49 yesterday.

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