Top brands add to their appeal

Article Excerpt

In October 2019, Post sold shares of its BellRing Brands business to the public through an IPO. BellRing makes protein bars, shakes and nutritional supplements. On March 10, 2022, Post distributed its remaining 80.1% stake in that business to its shareholders. They received 1.267788 shares of BellRing for every Post share held. Since the split, Post has gained 28%, while BellRing is up an impressive 84%. We feel both stocks can still move higher, particularly as their popular brands let them pass along rising ingredient and other costs to consumers. POST HOLDINGS INC. $87 is a buy. The company (New York symbol POST; Consumer sector; Shares outstanding: 58.9 million; Market cap: $5.1 billion; No dividend paid; Takeover Target Rating: Medium; www.postholdings.com) is a leading maker of cereals and packaged foods. The U.S. supplies 87% of its sales. Post has four operating segments: Post Consumer Brands (36% of sales), Foodservice (38%), Weetabix (8%), and Refrigerated Retail (18%). It also holds a 50% equity interest in Alpen Food Company…