Ralcorp Holdings' (NYSE:RAH) Post Volume Down, EPS Estimates Lowered

Ralcorp Holdings Inc.'s (NYSE:RAH) Post volume will be down in the fiscal first quarter of the year, and will affect the full year EPS of the company.

Barclays says, "Recent scanner data showing Post volume declines certainly corroborate RAH's expectations for a weaker fiscal 1Q. Accordingly, we are lowering our overly aggressive F1Q and FY11 estimates, and now look for EPS of $1.32 and $5.40 (in-line with Consensus), respectively. Note our updated estimates assume only very slight core business growth in FY11...While implied value of Post or LBO analyses may limit the downside for RAH, here's what has to play out for the shares' discounted valuation to narrow, in our view."

Barclays maintains an "Overweight" rating on Ralcorp Holdings Inc. (RAH), which closed Tuesday at $62.53, up $0.50, or 0.81 percent. Barclays has a price target of $66 on Ralcorp.