Lamb Weston Holdings: A Resilient Buy Rating with a Focus on Recovery and Growth Prospects

Lamb Weston Holdings (LW – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Peter Galbo from Bank of America Securities maintained a Buy rating on the stock and has a $113.00 price target.

Peter Galbo has given his Buy rating due to a combination of factors including Lamb Weston Holdings’ (LW) strategy to recover from recent volume declines and the company’s potential for volume growth in FY25. Despite a disappointing third quarter, Lamb Weston is expected to rebound, with plans in place to address the challenges faced, such as regaining lost customers and improving operational performance post an extensive ERP system transition. Galbo’s confidence in the company’s recovery is reflected in a reiterated Buy rating with a price objective of $113, based on 17.5 times the estimated earnings per share for the calendar year 2025.

Moreover, Galbo recognizes Lamb Weston’s direct sales force and service levels as key strengths that will support the company’s customer retention and acquisition efforts. The firm’s commitment to its pricing architecture and the potential for new business opportunities as it backfills capacity should also contribute to future growth. Despite the near-term headwinds such as soft QSR trends and away from home food inflation affecting low-income consumers, Galbo’s analysis suggests that Lamb Weston is well-positioned to navigate these challenges and emerge stronger, justifying the Buy rating.

Galbo covers the Consumer Defensive sector, focusing on stocks such as McCormick & Company, UTZ Brands, and Monster Beverage. According to TipRanks, Galbo has an average return of 1.8% and a 45.10% success rate on recommended stocks.

In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $105.00 price target.

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Lamb Weston Holdings (LW) Company Description:

Lamb Weston Holdings, Inc. engages in the production, distribution, and marketing of value-added frozen potato products. It operates through the following business segments: Global, Foodservice, Retail, and Other. The Global segment includes branded and private label frozen potato products sold in North America and international markets. The Foodservice segment comprises branded and private label frozen potato products sold throughout the United States and Canada. The Retail segment consists consumer facing retail branded and private label frozen potato products sold primarily to grocery, mass merchants, club, and specialty retailers. The Other segment compose of vegetable and dairy businesses. The company was founded on July 5, 2016 and is headquartered in Eagle, ID.