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Investing.com - Stifel reiterated its Buy rating and $130.00 price target on Post Holdings (NYSE:POST) Monday. The stock, currently trading at $112.91, appears undervalued according to InvestingPro analysis, with a market capitalization of $6.3 billion and an EBITDA of $1.3 billion over the last twelve months.
The firm expressed increased confidence in Post’s underlying business and strategic options following meetings with the company’s management team last week, including CEO Rob Vitale and CFO Matt Mainer. The company maintains strong financial health with a current ratio of 2.13, indicating robust liquidity.
Stifel highlighted its better understanding of the benefits from Post’s recently announced 8th Avenue acquisition, noting management’s focus on creating shareholder value through managing the base business to support its 3-4% EBITDA growth target. InvestingPro data reveals management’s commitment to shareholder value, with aggressive share buybacks complementing the company’s solid 29% gross profit margin.
The research firm believes Post’s current valuation creates "tension against M&A," making share repurchases an attractive near-term use of capital while the company remains opportunistic for compelling transactions.
Stifel maintained its Buy rating with confidence, stating it sees "strong potential upside for the shares from this level."
In other recent news, Post Holdings reported its second-quarter earnings for 2025, surpassing expectations with an earnings per share (EPS) of $1.41, although revenue fell short at $1.95 billion against a forecast of $1.99 billion. The company also raised its adjusted EBITDA guidance to a range of $1.430-$1.470 billion. Post Holdings announced the acquisition of 8th Avenue Food & Provisions for $880 million, which is expected to add approximately $1 billion in annual revenue. Analysts from Piper Sandler, Stifel, and Evercore ISI have positively adjusted their price targets for Post Holdings following this acquisition, with Piper Sandler raising its target to $150, Stifel maintaining a $130 target, and Evercore ISI increasing theirs to $131.
Moody’s has confirmed that Post Holdings’ ratings remain stable post-acquisition, noting the company’s strong liquidity position. The acquisition is strategically beneficial, enhancing Post’s private label and branded offerings, and is expected to contribute to EBITDA stability and free cash flow. Despite the acquisition, Post’s leverage remains largely unchanged, preserving flexibility for future deals. These developments underscore Post Holdings’ strategic growth initiatives and its focus on expanding its market presence in key product categories.
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