Oscar Gruss Starts Ralcorp Holdings Inc. (RAH) at Hold, $81 Price Target
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Price: $89.98 --0%
Rating Summary:
2 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 12 | New: 20
Rating Summary:
2 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 12 | New: 20
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Oscar Gruss initiates coverage on shares of Ralcorp Holdings Inc. (NYSE: RAH) with a Hold rating and $81 price target.
The company has recently announced plans to spinoff Post Foods in a tax-free spinoff to shareholders and rejected a cash proposal from Conagra Foods (NYSE: CAG).
RAH is forecasting roughly $1 billion in cash proceeds from the sale of Post Foods, which the firm believes management will use $500 million for acquisitions and the remaining $500 million for buybacks and to pay off debt.
An analyst at Oscar Gruss comments, "While both of CAG’s proposals may have been very tempting to shareholders, RAH management and the Board were not of the same opinion. We believe that while the POST spin-off may add incremental value near-term, it is not equal to the instant value gratification of the withdrawn CAG cash proposal."
For more ratings news on Ralcorp Holdings Inc. click here and for the rating history of Ralcorp Holdings Inc. click here.
Shares of Ralcorp Holdings Inc. closed at $76.71 yesterday.
The company has recently announced plans to spinoff Post Foods in a tax-free spinoff to shareholders and rejected a cash proposal from Conagra Foods (NYSE: CAG).
RAH is forecasting roughly $1 billion in cash proceeds from the sale of Post Foods, which the firm believes management will use $500 million for acquisitions and the remaining $500 million for buybacks and to pay off debt.
An analyst at Oscar Gruss comments, "While both of CAG’s proposals may have been very tempting to shareholders, RAH management and the Board were not of the same opinion. We believe that while the POST spin-off may add incremental value near-term, it is not equal to the instant value gratification of the withdrawn CAG cash proposal."
For more ratings news on Ralcorp Holdings Inc. click here and for the rating history of Ralcorp Holdings Inc. click here.
Shares of Ralcorp Holdings Inc. closed at $76.71 yesterday.
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