UPDATE: KeyBanc Initiates Ralcorp Holdings at Hold on Commodities Outlook

KeyBanc initiated its coverage on Ralcorp Holdings

with a Hold rating as it believe the company faces increasing competition in private label and branded foods spaces. KeyBanc commented, "RAH's organic growth has lagged its category growth rate due primarily to increased private label competition in its Snacks, Sauces, and Spreads segment. Given RAH's higher than average exposure to commodities, there will be base business headwinds during inflationary periods, such as the one we are currently entering. As a result, we expect the majority of RAH's future growth to come from acquisitions, which has been the main driver of growth over the past five years." Ralcorp Holdings closed at $60.45 on Tuesday.