Zacks Investment Research Upgrades Lamb Weston (LW) to Buy

Lamb Weston (NYSE:LW) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Wednesday. The brokerage currently has a $76.00 price target on the specialty retailer’s stock. Zacks Investment Research‘s price target suggests a potential upside of 11.16% from the stock’s current price.

According to Zacks, “Lamb Weston has surpassed the industry in the past six months. The company has been gaining from its robust LTO innovations, which drove nearly half the volume growth of Lamb Weston’s significant Global segment in the third-quarter fiscal 2018. During the quarter, both top and bottom lines grew year over year and topped estimates for the sixth straight time. While earnings gained from lower tax rate, higher operating income and equity method investment earnings, sales were backed by strong volumes and pricing. Management expects price/mix to grow in fiscal 2018, which led to a raised sales view. However, transportation, warehousing and commodity costs are expected to increase. Also, raw potato prices are expected to rise in low to mid single-digit range. These factors, along with an anticipated rise in SG&A costs may hurt margins. Near-term issues in the foodservice unit are also a worry.”

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LW has been the topic of a number of other reports. ValuEngine raised Lamb Weston from a “hold” rating to a “buy” rating in a research report on Thursday, June 21st. Bank of America upped their price target on Lamb Weston from $65.00 to $70.00 and gave the company a “buy” rating in a report on Tuesday, June 19th. Jefferies Financial Group reaffirmed a “buy” rating and issued a $71.00 price target on shares of Lamb Weston in a report on Wednesday, June 6th. Morgan Stanley upped their price target on Lamb Weston from $61.00 to $64.00 and gave the company an “equal weight” rating in a report on Friday, April 6th. Finally, Vertical Group began coverage on Lamb Weston in a report on Tuesday, May 22nd. They issued a “sell” rating and a $56.00 target price for the company. Two analysts have rated the stock with a sell rating, two have given a hold rating and four have given a buy rating to the stock. Lamb Weston has an average rating of “Hold” and an average target price of $66.83.

Shares of Lamb Weston stock traded up $0.38 on Wednesday, reaching $68.37. 514,488 shares of the company traded hands, compared to its average volume of 1,042,591. The company has a quick ratio of 0.63, a current ratio of 1.72 and a debt-to-equity ratio of -5.98. Lamb Weston has a 52 week low of $42.58 and a 52 week high of $69.55. The company has a market capitalization of $9.94 billion, a P/E ratio of 29.47, a P/E/G ratio of 1.84 and a beta of 0.53.

Lamb Weston (NYSE:LW) last announced its earnings results on Thursday, April 5th. The specialty retailer reported $0.91 EPS for the quarter, beating the consensus estimate of $0.80 by $0.11. Lamb Weston had a negative return on equity of 69.53% and a net margin of 11.75%. The business had revenue of $863.40 million for the quarter, compared to the consensus estimate of $813.81 million. During the same period last year, the business posted $0.59 EPS. The company’s revenue was up 12.3% on a year-over-year basis. equities analysts expect that Lamb Weston will post 2.62 EPS for the current fiscal year.

Large investors have recently modified their holdings of the stock. Goldman Sachs Group Inc. raised its holdings in shares of Lamb Weston by 0.9% during the fourth quarter. Goldman Sachs Group Inc. now owns 939,845 shares of the specialty retailer’s stock valued at $53,054,000 after purchasing an additional 8,769 shares during the last quarter. GSA Capital Partners LLP raised its stake in shares of Lamb Weston by 29.7% in the first quarter. GSA Capital Partners LLP now owns 37,078 shares of the specialty retailer’s stock valued at $2,159,000 after acquiring an additional 8,494 shares during the period. Driehaus Capital Management LLC increased its stake in Lamb Weston by 30.9% in the 4th quarter. Driehaus Capital Management LLC now owns 32,946 shares of the specialty retailer’s stock worth $1,860,000 after buying an additional 7,774 shares during the period. MetLife Investment Advisors LLC purchased a new stake in Lamb Weston in the 4th quarter valued at about $5,221,000. Finally, QS Investors LLC lifted its position in shares of Lamb Weston by 10.9% in the 4th quarter. QS Investors LLC now owns 10,101 shares of the specialty retailer’s stock worth $570,000 after acquiring an additional 994 shares during the period. Institutional investors own 79.52% of the company’s stock.

Lamb Weston Company Profile

Lamb Weston Holdings, Inc produces and markets value-added frozen potato products worldwide. It operates through four segments: Global, Foodservice, Retail, and Other. The company offers frozen potatoes, sweet potatoes, and appetizers under the Lamb Weston brand name, as well as various customer labels.

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