How are energy investors positioned?
Investing.com - JPMorgan initiated coverage on Post Holdings (NYSE:POST) with an Overweight rating and a price target of $122.00, down from a previous target of $141.00. According to InvestingPro data, the company currently trades at a P/E ratio of 17.1x and shows a "GOOD" overall financial health score.
The investment bank does not anticipate significant organic sales or profit growth from most of Post Holdings’ business segments in the near term, with the exception of its Foodservice division.
JPMorgan expects Post Holdings’ EBITDA growth to be driven primarily by accretive mergers and acquisitions, synergy capture, and cost-saving measures, including the closure of cereal plants.
The firm highlighted Post Holdings’ substantial free cash flow generation, which has averaged 150% of net income over the past five years, noting this capital is being deployed for share repurchases that should benefit earnings per share growth even without acquisitions.
While JPMorgan does not expect these factors to drive a re-rating of Post Holdings shares, the bank anticipates the resulting EBITDA growth and reduced share count will push the stock price higher.
In other recent news, Post Holdings Inc. announced its financial results for the third quarter of 2025, surpassing analysts’ expectations. The company reported an earnings per share (EPS) of $2.03, which exceeded the forecasted $1.66, representing a 22.29% surprise. Revenue also came in strong at 2 billion dollars, slightly above the anticipated 1.95 billion dollars. These results mark a positive development for Post Holdings, reflecting robust performance in the quarter. While the company’s stock price rose following the announcement, this article focuses on the earnings and revenue outcomes. The company’s ability to exceed both EPS and revenue estimates highlights its operational strength. These recent developments are crucial for investors tracking Post Holdings’ financial health.
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