Post Holdings, Inc. (POST) Remains Favored as Analysts Look Past Near-Term Challenges

Post Holdings, Inc. (NYSE:POST) is among the consumer defensive stocks to buy according to analysts. As of December 12, Post Holdings, Inc. (NYSE:POST) has a ‘Buy’ or equivalent rating from 80% of the analysts covering the stock. The median price target of $125 reflects an upside potential of 26.60% from the current price.

According to TheFly, Mizuho reduced the price target on Post Holdings, Inc. (NYSE:POST) to $120 from $122 on December 1, keeping an unchanged ‘Outperform’ rating. The firm highlighted the company’s U.S. consumer brands and cereal headwinds in Europe.

Separately, on November 26, the company announced a new $500 million share repurchase authorization, which became effective on November 27. The previous $500 million program, under which the company repurchased $275.2 million in shares as of November 25, has been cancelled.

Earlier, on November 20, Post Holdings, Inc. (NYSE:POST) delivered its fourth-quarter results, reporting an EPS of $2.09, $0.22 better than the consensus of $1.87, and revenue of $2.2 billion, lower than the analyst estimate of $2.25 billion.

During the earnings call, management reaffirmed the company’s strategic focus. As stated by CEO Rob Vitale,

“We expect the benefits of our diversification will allow us to navigate an environment of continued uncertainty.”

A series of analyst upgrades followed the mixed financial performance. On November 24, David Palmer from Evercore ISI trimmed the price target on Post Holdings, Inc. (NYSE:POST) to $129 from $131, while keeping an ‘Outperform’ rating. Three days earlier, Stifel reaffirmed its Buy rating and $130 price target.

Post Holdings, Inc. (NYSE:POST) is a Missouri-based consumer packaged goods holding company. Founded in 1895, the company operates through four segments: Post Consumer Brands, Weetabix, Foodservice, and Refrigerated Retail.

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