Goldman Sachs analyst Adam Samuelson has reiterated their bullish stance on LW stock, giving a Buy rating today.
Adam Samuelson’s rating is based on the robust underlying margin performance and operating results of Lamb Weston Holdings, which surpassed expectations. Despite a significant pre-tax charge for excess potato inventory, the company was able to maintain its full-year EBITDA guidance, showcasing a strong financial position. This performance, combined with anticipated continued margin improvements and operational efficiencies, underpins Samuelson’s optimistic view on the stock.
Looking forward, Samuelson believes that the recent improvements in gross margins set a higher baseline for future profitability, particularly from fiscal year 2025 onwards. He also notes potential growth drivers, such as the shift towards higher-value battered and coated products and revenue growth management initiatives in the EMEA region. With these factors in mind, Samuelson has raised his EBITDA and EPS forecasts for the next two fiscal years and increased the 12-month price target, reinforcing his Buy rating for Lamb Weston Holdings.
In another report released today, Jefferies also reiterated a Buy rating on the stock with a $133.00 price target.
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Based on the recent corporate insider activity of 44 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of LW in relation to earlier this year.
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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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