Goldman Sachs maintained a Neutral rating on Post Holdings (NYSE: POST) and lowered its price target to $42.00 (from $48.00). Analyst Jason English said Q3 results and its guidance cut reinforce lack of viability and confidence.

"POST is more intriguing after the recent sell-off, but a lack of earnings visibility or confidence in management’s forecasts keeps us on the sidelines with our Neutral rating. Results validate concerns we hold for its core cereal business; matching our below-consensus forecast. The shortfall, versus our forecast, is coming from its acquired businesses where a lack of history makes it difficult to gauge the likelihood and pace of recovery," said English.

"Active Nutrition drove the largest shortfall and management’s explanation of supply disruptions suggests a transitory nature. The action plan for improvement, however, means full recovery may be 3+ quarters away and the risk of demand disruption following service disruption appears high. Private label is also lagging our forecast and we continue to hold a guarded view as CAG – its chief competitor – aggressively invests to restore lost volume. These risks, combined with the risks inherent with management’s roll-up story temper our expectations," he added.

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Shares of Post Holdings closed at $37.43 yesterday.