Goldman Sachs Reiterates Buy Rating, $45 PT on Post Holdings on Modesto Plant Closure

In a report published Friday, Goldman Sachs analyst Jason English reiterated a Buy rating and $45.00 price target on Post Holdings

. In the report, English noted, “Post announced that it is moving forward with plans to close its Modesto, CA plant. The transfer of production capabilities and closure of the plant are expected to be completed by September, 2014. The closure will result in $14 mn of annualized savings and will necessitate $29.8 mn of CapEx. This announcement follows the release of disappointing Nielsen data. We lower our FY13 EPS estimate to $1.37, from $1.41, on risk of a near-term revenue-driven EPS shortfall. Our above-consensus FY14 & FY15 estimates remain unchanged as higher productivity savings next year (to $14 mn, from $8 mn) offset a lower base and higher reinvestment assumption.” Post Holdings closed on Thursday at $43.10.