Analyst Robert Dickerson of Jefferies reiterated a Buy rating on Lamb Weston Holdings (LW – Research Report), with a price target of $133.00.
Robert Dickerson has given his Buy rating due to a combination of factors including Lamb Weston Holdings’ strong profitability and earnings per share (EPS) for the second quarter, which showed resilience despite a significant inventory write-down. The company’s EPS still surpassed consensus estimates, even after accounting for the $0.36 impact from inventory adjustments. Absent this one-time charge, EBITDA would have been approximately 13% higher than consensus estimates, further underlining the company’s robust financial performance.
Additionally, Dickerson’s positive outlook is reinforced by Lamb Weston Holdings’ increased EPS guidance for the fiscal year, which is now in line with consensus for the second half of the year. The company’s organic sales growth exceeded expectations by about 6%, driven by effective pricing strategies. Volume growth showed sequential improvement, and price elasticities remained low, indicating solid demand. These healthy normalized fundamentals support the reiterated Buy rating, suggesting confidence in the company’s ongoing financial strength and market position.
Dickerson covers the Consumer Defensive sector, focusing on stocks such as Lamb Weston Holdings, UTZ Brands, and Conagra Brands. According to TipRanks, Dickerson has an average return of 3.3% and a 60.68% success rate on recommended stocks.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $120.00 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.
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