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Post Holdings| Trust in the American Consumer

Ticker (Exchange) – POST (NYSE)
ISIN - US7374461041
Current price – $114.5
Target price$125.0
Growth potential – 9.2%🔥
Investment horizon – 1 year
Post Holdings is an American consumer goods company specializing in the sale of packaged food products. The company demonstrates solid financial growth, driven in part by mergers and acquisitions. Over the past 12 months, Post Holdings' stock has risen by 33.6%, but it still has growth potential. The fair value of the company's shares is $125, with an upside of 9.2%.
Investment thesis
🔼 Strong financial performance. Post Holdings reported solid financial results for Q3 2024 (Q2 2024). The company's revenue increased by 4.7% YoY to $1.95 bln. Adjusted earnings per share (EPS) came in at $1.54, compared to $1.52 in the same period last year. EPS significantly exceeded market expectations, while revenue slightly missed projections. Post Holdings also improved its forecast for the entire 2024 fiscal year.
🔼 Attractive valuation. Post Holdings is valued at just 19.2 times expected annual earnings, which is slightly higher than the sector's median (17.6x) but significantly lower than its own 5-year average (28.6x).
🔼 Share buyback program. The company shares profits with shareholders through a stock buyback program. In Q3 2024, it repurchased $207.9 million worth of shares, and in July, the Board of Directors authorized an additional $500 million for buybacks. These programs support the stock price and reduce volatility.
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Disclaimer

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