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Piper Sandler raised its price target on Post Holdings (NYSE:POST) to $150.00 from $140.00 on Wednesday, while maintaining an Overweight rating on the stock. The company, currently valued at $6.26 billion, has demonstrated strong financial health with a current ratio of 2.13, indicating robust liquidity position.
The research firm cited potential upside in Post’s Foodservice segment for the third quarter of fiscal 2025, noting that stronger performance in Refrigerated Retail would likely offset weaker trends in the Post Consumer Brands division. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics, with management actively pursuing share buybacks to enhance shareholder value.
Piper Sandler increased its fiscal 2025 EBITDA estimate from $1.45 billion to $1.48 billion, reflecting an approximately $30 million fourth-quarter lift from the company’s 8th Avenue acquisition. The firm also raised its fiscal 2026 EBITDA projection from $1.505 billion to $1.595 billion based on 8th Avenue’s contribution, partially offset by higher corporate costs.
The firm noted that despite the 8th Avenue acquisition, Post Holdings’ leverage remains essentially unchanged, preserving the company’s flexibility for additional deals or share buybacks.
The new $150 price target represents approximately 10 times the company’s calendar 2026 estimated enterprise value to EBITDA ratio, according to Piper Sandler’s analysis.
In other recent news, Post Holdings Inc. reported its second-quarter earnings for 2025, revealing an earnings per share (EPS) of $1.41, surpassing the forecasted $1.19. However, the company’s revenue fell short of expectations, coming in at $1.95 billion against a forecast of $1.99 billion. The company has revised its adjusted EBITDA guidance upwards to a range of $1.430-$1.470 billion for the year. Post Holdings also announced the acquisition of 8th Avenue Food & Provisions for $880 million, a move expected to add roughly $1 billion in annual revenue. Stifel analysts maintained a Buy rating on Post Holdings, citing the acquisition as a positive strategic move, while Evercore ISI raised the stock price target to $131, maintaining an Outperform rating. Moody’s confirmed that Post Holdings’ ratings remain stable following the acquisition announcement. The acquisition is anticipated to close on July 1, 2025, and is expected to improve EBITDA stability and contribute to free cash flow.
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