UBS Maintains a 'Neutral' on Ralcorp Holdings (RAH); Cutting Numbers As We Enter Life After Post

UBS maintains a 'Neutral' on Ralcorp Holdings Inc. (NYSE: RAH) price target lowered from $87 to $78.

UBS analyst says, "Following earnings and the publication of the 10Q we are adjusting our FY12e EPS to $3.99 (-23% YOY, cons $3.97) from $5.72 and our FY13e EPS to $4.02 (+1% YOY, cons $4.13) from $6.19 in order to reflect Ralcorp ex Post. We have also updated our sum of the parts analysis to account for Ralcorp’s remaining 19.7% share of Post, and are lowering our price target."

"We believe Ralcorp stands to regain its consolidator premium as it leverages its balance sheet to make further accretive acquisitions in private label. Additionally, we believe that Ralcorp’s stock is supported by a potential resumption of share repurchases, as well as ongoing productivity initiatives that may deliver $1.15 in incremental EPS by FY14."

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 $75.74 yesterday.

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