Barclays Insight on Post Holdings (POST): Value Brand Launch of "Good Morenings" and Acquisition Pursuit

August 14, 2012 4:42 PM EDT
Get Alerts POST Hot Sheet
Price: $80.95 +0.51%

Rating Summary:
    12 Buy, 6 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 14 | New: 11
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Barclays maintains an 'Overweight' on Post Holdings (NYSE: POST) price target of $34.00.

Analyst, Andrew Lazar, said, "We continue to believe POST shares can benefit from significant optionality around the business, as we expect management to aggressively look to create value, be it through strategic M&A, returning cash to shareholders, or rationalizing its fixed cost base. While management's commentary around fiscal 2013 costs, not to mention a core cereal business that has not yet stabilized, could well render our fiscal 2013 EPS estimate of $2.25 overly optimistic, we continue to see multiple ways for management to create value. We maintain our view that FY12 is likely to represent a trough year from an operating margin perspective, though we acknowledge that the speed of a potential bouceback remains to be determined."

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 $29.70 yesterday.


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