Post Holdings drives growth through acquisitions and pricing strength, while tackling cost pressures and soft volumes in key segments.
POST is closing two cereal plants by 2025-end to reduce production capacity amid declining cereal demand.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Post Holdings (POST) said Wednesday that it is closing two of its plants, citing a decline in demand for “ready-to-eat” cereals.
Post Holdings plans to close cereal manufacturing plants in Ontario and Nevada, putting about 300 employees out of work, as demand in the ready-to-eat cereal category continues to decline.
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Post Holdings has shown slow organic growth, but maintains stable earnings through effective cost control and pricing, further boosted by a surge in egg prices. Post was speculated to be in talks with Lamb Weston over a potential merger, but speculation has since died down with Post instead acquiring Potato Products of Idaho. Post's stable cash flow and strong historical M&A track record are still attractive. I estimate a fair value of $146 for POST stock, suggesting 28% upside even without further M&A.
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Whether you're a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Post Holdings (POST) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.