On Oct 04, major Wall Street analysts update their ratings for $Lamb Weston (LW.US)$, with price targets ranging from $67 to $77.
BofA Securities analyst Peter Galbo maintains with a hold rating, and maintains the target price at $68.
Barclays analyst Andrew Lazar maintains with a buy rating, and adjusts the target price from $70 to $74.
Wells Fargo analyst Marc Torrente maintains with a buy rating, and adjusts the target price from $70 to $77.
TD Cowen analyst Robert Moskow maintains with a hold rating, and adjusts the target price from $65 to $67.
Furthermore, according to the comprehensive report, the opinions of $Lamb Weston (LW.US)$'s main analysts recently are as follows:
Lamb Weston's measures to decrease its potato processing capacity in North America are anticipated to bring the company nearer to a low- to mid-90% capacity utilization rate in the region. This expectation holds despite the present weak quick service traffic trends. Such a strategy is likely to underpin a sensible yet competitive pricing landscape.
Lamb Weston's recent fiscal Q1 earnings release was multifaceted with notable sales and earnings surpassing expectations, largely due to effective pricing strategies. Despite a forecasted reduction in gross margin for fiscal 2025 and the announcement of plant and line shutdowns, the current competitive pricing environment appears stable. Lamb Weston is actively seeking to enhance capacity utilization rates, and the lowered guidance for fixed cost leverage is attributed to the company's strategic choice to manage surplus finished goods inventory. The company's updated projections are deemed cautious, suggesting a potential positive shift in market sentiment toward the stock.
Following Lamb Weston's report of a commendable first quarter with a robust top-line showing, the company announced a restructuring initiative to tackle the prevailing supply/demand discrepancy. Moreover, the company has reaffirmed its revenue forecasts, suggesting an anticipation of increased growth internationally, while concurrently adjusting its EBITDA projections towards the lower spectrum of the initial estimates to account for escalated production expenses. The implementation of capacity reductions has fortified confidence in the likelihood of price stabilization, although expectations are set for sustained pricing pressures extending into FY26.
Incremental positives noted in Q1, along with welcomed capacity and cost plans, have helped to offset potential negatives. It is anticipated that shares may gain more interest in the second half of the year as visibility improves and leverage is realized on re-based operations. However, ongoing discussions regarding costs and pricing could continue to affect the stock in the near term.
Here are the latest investment ratings and price targets for $Lamb Weston (LW.US)$ from 4 analysts:
Note:
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