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On Monday, Stifel increased the price target for Post Holdings (NYSE:POST) shares to $130 from the previous $120 while maintaining a "Buy" rating for the stock.
The adjustment follows Post Holdings' reported third-quarter EBITDA of $350 million, a 3.5% increase from the previous year and $22 million above Stifel's estimate.
The company's recent financial performance has been consistent with its history of steady EBITDA growth, even amid a challenging consumer environment.
Post Holdings has also updated its fiscal year 2024 (FY24) guidance, raising the mid-point by 2% compared to the earlier projections. Stifel now anticipates Post Holdings' EBITDA to reach $1.385 billion for FY24, suggesting a growth of over 12%.
Looking ahead to fiscal year 2025 (FY25), Stifel expects the company's EBITDA growth to align with its long-term plans, projecting an increase of approximately 3%.
The firm highlights Post Holdings' strategic position in the current mergers and acquisitions climate, noting the company's ability to remain a disciplined acquirer or to alternatively repurchase its own shares when no suitable transaction opportunities arise.
The upgrade in the price target to $130 reflects the robust quarter that Post Holdings has experienced, as well as the positive outlook for the company's financial growth in the following years.
In other recent news, Post Holdings has seen significant developments in its financial outlook. The company reported third-quarter results that surpassed expectations for both gross profit and EBITDA, leading Jefferies to increase its price target from $127 to $129, maintaining a buy rating.
Additionally, Post Holdings managed to maintain its fiscal year 2024 Adjusted EBITDA guidance despite the outbreak of avian influenza at its contracted egg-laying facilities.
Evercore ISI also raised the share price target for Post Holdings to $122, reflecting confidence in the company's strong performance across various sectors and improved supply chain execution.
Despite challenges like decreased volumes in certain segments and a slowdown in restaurant foot traffic, the company's strategic capital allocation, including share buybacks and exploring mergers and acquisitions, positions it well for future growth.
In the face of avian influenza affecting its supply network, Post Holdings reaffirmed its fiscal year 2024 Adjusted EBITDA guidance, showcasing confidence in its financial projections.
The company's robust performance for the second quarter of fiscal year 2024 was attributed to disciplined pricing and effective cost management. These recent developments underscore analysts' positive outlook on Post Holdings' financial health and growth prospects.
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