Lamb Weston Holdings Faces Challenging Year Amid Investor Interest
Company Overview: Based in Eagle, Idaho, Lamb Weston Holdings, Inc. (LW) is a prominent player in the frozen potato products market, catering primarily to the foodservice and retail sectors. With a market capitalization of $8.3 billion, Lamb Weston is well-known for its innovative products, ranging from French fries to hash browns and specialty potato items.
Stock Performance: Over the past 52 weeks, Lamb Weston shares have struggled significantly, declining by 43.2%. In contrast, the S&P 500 Index ($SPX) saw a 22.3% increase during the same period. For 2025, LW’s stock has dropped nearly 12.5%, while the SPX has increased by 4%.
In a narrower comparison, Lamb Weston also fell short relative to the Consumer Staples Select Sector SPDR Fund (XLP), which gained 10.9% over the last 52 weeks and 2.5% year-to-date (YTD).
Market Movement: Despite these challenges, the company’s stock rose more than 2% on December 27, outperforming the S&P 500. This increase followed an amended 13D filing announcing that activist investor Jana Partners LLC had acquired a substantial stake in the company, attracting greater attention from investors regarding its strategic direction.
Earnings Forecast: Analysts predict a rough fiscal year for Lamb Weston, which ends in May 2025. They anticipate a 39% year-over-year drop in earnings per share (EPS), estimating it will fall to $3.10. The company’s earnings history remains concerning, missing consensus estimates in three of the last four quarters and only meeting once.
Analyst Opinions: Currently, out of the 11 analysts covering Lamb Weston, the consensus rating is a “Moderate Buy,” which comprises four “Strong Buy” recommendations and seven “Hold” ratings. This outlook is less optimistic compared to two months ago when the stock had five “Strong Buy” ratings.
On December 23, Andrew Lazar from Barclays reaffirmed a “Buy” rating for Lamb Weston, setting a price target of $69.
The average price target stands at $68.45, suggesting a potential upside of 17.1% from current levels. Meanwhile, the highest target of $80 indicates an upside potential of 36.8%.
On the date of publication, Kritika Sarmah did not hold any positions in the mentioned securities, either directly or indirectly. All information is for informational purposes only. For more details, please view the Barchart Disclosure Policy here.
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