Lamb Weston (NYSE:LW) Stock Has Average Target Price of $53.82 According to Analysts

Key Points

• Analysts have a consensus “Hold” rating on Lamb Weston, with eight holds, three buys, one strong buy, and one sell among 13 brokerages. The average 12-month price target is $53.82, near the stock’s $53.59 opening price.
• Lamb Weston exceeded quarterly expectations, reporting $0.75 EPS versus the $0.59 consensus and $1.67 billion in revenue versus $1.65 billion expected. Revenue increased 0.7% year over year, and fiscal 2027 EPS guidance is $3.05–$3.35.
• The company declared a quarterly dividend of $0.38 per share, equivalent to $1.52 annually and a 2.8% yield. Institutional investors own 89.56% of the stock, with several major funds recently increasing their positions.

Lamb Weston (NYSE:LW - Get Free Report) has earned an average recommendation of "Hold" from the thirteen brokerages that are presently covering the stock, Marketbeat.com reports. One equities research analyst has rated the stock with a sell recommendation, eight have issued a hold recommendation, three have given a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year price target among brokers that have issued ratings on the stock in the last year is $53.82.

LW has been the subject of several recent analyst reports. Wells Fargo & Company reduced their price objective on shares of Lamb Weston from $57.00 to $54.00 and set an "overweight" rating for the company in a research note on Wednesday, October 7th. Stephens raised their target price on shares of Lamb Weston from $50.00 to $55.00 and gave the company an "equal weight" rating in a research note on Thursday, October 8th. Sanford C. Bernstein lifted their price target on shares of Lamb Weston from $42.00 to $57.00 and gave the stock a "market perform" rating in a report on Tuesday, July 28th. Zacks Research raised Lamb Weston from a "hold" rating to a "strong-buy" rating in a research report on Friday, October 9th. Finally, Barclays upped their price target on Lamb Weston from $56.00 to $58.00 and gave the stock an "overweight" rating in a research report on Thursday, October 8th.

Lamb Weston Stock Up 0.0%

Shares of Lamb Weston stock opened at $53.59 on Tuesday. The company has a debt-to-equity ratio of 1.98, a current ratio of 1.45 and a quick ratio of 0.77. The stock has a market cap of $7.38 billion, a price-to-earnings ratio of 29.29, a PEG ratio of 1.94 and a beta of 0.49. The firm's 50-day moving average is $49.71 and its two-hundred day moving average is $46.65. Lamb Weston has a 1 year low of $37.62 and a 1 year high of $67.07.

Lamb Weston (NYSE:LW - Get Free Report) last issued its quarterly earnings data on Tuesday, October 6th. The specialty retailer reported $0.75 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.59 by $0.16. Lamb Weston had a net margin of 3.85% and a return on equity of 23.27%. The company had revenue of $1.67 billion for the quarter, compared to analyst estimates of $1.65 billion. During the same period last year, the company posted $0.74 earnings per share. Lamb Weston's revenue was up .7% compared to the same quarter last year. Lamb Weston has set its FY 2027 guidance at 3.050-3.350 EPS. As a group, research analysts expect that Lamb Weston will post 3.24 earnings per share for the current fiscal year.

Lamb Weston Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 4th. Investors of record on Friday, November 6th will be paid a dividend of $0.38 per share. This represents a $1.52 annualized dividend and a yield of 2.8%. The ex-dividend date is Friday, November 6th. Lamb Weston's payout ratio is 83.06%.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new stake in Lamb Weston during the 2nd quarter valued at approximately $730,276,000. JANA Partners Management LP boosted its holdings in shares of Lamb Weston by 7.7% in the 2nd quarter. JANA Partners Management LP now owns 5,394,635 shares of the specialty retailer's stock valued at $232,940,000 after acquiring an additional 386,000 shares during the last quarter. State Street Corp increased its stake in shares of Lamb Weston by 6.4% in the second quarter. State Street Corp now owns 4,869,644 shares of the specialty retailer's stock worth $210,271,000 after acquiring an additional 294,120 shares during the period. Dimensional Fund Advisors LP increased its stake in shares of Lamb Weston by 28.1% in the first quarter. Dimensional Fund Advisors LP now owns 2,742,208 shares of the specialty retailer's stock worth $115,865,000 after acquiring an additional 601,171 shares during the period. Finally, Douglas Lane & Associates LLC raised its holdings in shares of Lamb Weston by 7.7% during the third quarter. Douglas Lane & Associates LLC now owns 1,811,598 shares of the specialty retailer's stock worth $75,526,000 after purchasing an additional 129,243 shares during the last quarter. 89.56% of the stock is owned by institutional investors and hedge funds.

Lamb Weston Company Profile

Lamb Weston Holdings, Inc NYSE: LW is a global producer and distributor of frozen potato products. The company supplies French fries, potato wedges, hash browns, tater tots, mashed potatoes, sweet potato products and other potato-based offerings to foodservice operators, restaurants, retailers and institutional customers.

Lamb Weston serves customers in North America and international markets through a portfolio of branded, licensed and customer-specific products. Its offerings are used by restaurants, schools, hospitals, hotels and other foodservice establishments, as well as sold through retail and grocery channels.

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