Lamb Weston Holdings Receives a Buy from Jefferies

By Ryan Adsit

Jefferies analyst Akshay Jagdale initiated coverage with a Buy rating on Lamb Weston Holdings (NYSE: LW) today and set a price target of $41. The company’s shares opened today at $31.40.

Jagdale said:

“We are initiating coverage of Lamb Weston Holdings, Inc. (NYSE: LW) with a Buy rating and $41 price target. The company is a leader in the ~$13B global frozen potato market with the #1 share in the US (42%) and #2 share globally (23%). Unique and favorable category growth and competitive dynamics should contribute to best-in-class growth for frozen potato manufacturers. LW has gained significant share over the last decade and we expect this trend to continue resulting in LW’s growth continuing to exceed that of the category. Margin outlook is very favorable, especially in the ST.”

According to TipRanks.com, Jagdale is a 4-star analyst with an average return of 3.0% and a 52.1% success rate. Jagdale covers the Consumer Goods sector, focusing on stocks such as Keurig Green Mountain, Amplify Snack Brands, and McCormick & Company.

Lamb Weston Holdings has an analyst consensus of Moderate Buy, with a price target consensus of $41.

The company has a one year high of $35 and a one year low of $28.75. Currently, Lamb Weston Holdings has an average volume of 4.54M.

Lamb Weston Holdings, Inc. produce, provides, and markets value-added frozen potato products. It operates through the following segments: Global, Foodservice, Retail, and Other. The Global segment includes sales to retail and foodservice customers outside the United States and Canada and the results of operations associated with Lamb Weston’s business with very large chain restaurant customers, whether those results are generated in the United States or abroad. The Foodservice segment covers sales to broad line foodservice distribution customers in the United States and Canada. The Retail segment comprised of sales to grocery, mass, club, and specialty retailers primarily in the United States. The Other segment comprises consolidated results of operations from Lamb Weston’s frozen vegetable business and dairy business and equity method earnings from Lamb Weston’s unconsolidated joint ventures, Lamb Weston Meijer and Lamb Weston RDO. The company was founded on July 5, 2016 and is headquartered in Chicago, IL.