UBS Maintains a 'Neutral' on Ralcorp Holdings (RAH); Accretion Potential Remains for ConAgra (CAG)

UBS maintains a 'Neutral' on Ralcorp Holdings (NYSE: RAH), PT raised by $1 to $91.

UBS analyst says, "We believe ConAgra (NYSE: CAG) could be a buyer of either 1) Ralcorp in the next 4-6 months before a tax free split, or 2) the new Ralcorp (ex Post) after the spin-off. We do not believe ConAgra’s hostile bid for Ralcorp will preclude it from buying either business post-spin."

"Our PT represents 16x our non-deal CY12E EPS of $5.72 and is based on a blended 30% chance of a $96 pre-spin cash take-out, a 30% post-spin sale of the PL business ($97), and a 40% chance of a spin and standalone companies ($82)."

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 $86.00 yesterday.

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