Post Holdings (POST) Stock Forecast & Price Target

Post Holdings Inc. is projected to experience a stronger outlook for fiscal 2026 EBITDA, primarily attributed to the recent acquisition of 8th Avenue, which is expected to contribute approximately $115 million in EBITDA at an attractive valuation below 7x EBITDA. The company possesses a robust cash position, estimated at around $625 million as of March 31, 2025, allowing for significant earnings per share (EPS) accretion while maintaining flexibility for potential future acquisitions or share buybacks, despite a modest increase in net debt to EBITDA from 4.5x to 4.6x post-acquisition. Overall, the anticipated synergies from the acquisition and solid cash reserves underline a positive outlook on the financial trajectory of Post Holdings.

Post Holdings Inc. is facing significant challenges, as evidenced by recent declines in sales attributed to higher pricing pressures related to Gravy Train and the discontinuation of private label co-manufacturing, leading to an estimated sales growth reduction from -4.0% to -8.5%. Additionally, the anticipated brand refresh for Nutrish is not expected to offset the current negative momentum, which is further reflected in the lowered EBITDA forecast for F3Q25 from approximately $193 million to $184 million. Overall, these factors contribute to a fundamentally negative outlook for the company’s stock performance.