Jefferies Group Reaffirms Buy Rating for Lamb Weston (LW)

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Lamb Weston (NYSE:LW)‘s stock had its “buy” rating reiterated by research analysts at Jefferies Group in a research report issued on Wednesday. They currently have a $71.00 target price on the specialty retailer’s stock. Jefferies Group’s target price suggests a potential upside of 9.47% from the stock’s previous close.

The analysts wrote, “LW’s stock is down on the news that Mexico has imposed a 20% tariff on US frozen potato exports. Given our view that Mexico represents 1-2% of LW’s sales, the tariff is likely temporary & a good portion of the volumes will be sourced from other NA exporters (Canada), we believe the impact will be relatively immaterial on LW & the industry. Specifically, we estimate the tariff will impact LW’s EPS by less than 1% & industry utilization rates between 20-60 bps.””

Several other analysts also recently weighed in on LW. Zacks Investment Research downgraded Lamb Weston from a “buy” rating to a “hold” rating in a report on Tuesday, March 13th. Morgan Stanley lifted their price objective on Lamb Weston from $61.00 to $64.00 and gave the company an “equal weight” rating in a report on Friday, April 6th. Vertical Research began coverage on Lamb Weston in a report on Monday, May 21st. They issued a “sell” rating for the company. Finally, Vertical Group began coverage on Lamb Weston in a report on Tuesday, May 22nd. They issued a “sell” rating and a $56.00 price objective for the company. Two analysts have rated the stock with a sell rating, three have issued a hold rating and two have issued a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and a consensus price target of $62.50.

NYSE:LW opened at $64.86 on Wednesday. Lamb Weston has a twelve month low of $42.58 and a twelve month high of $68.70. The firm has a market cap of $9.45 billion, a PE ratio of 25.56, a price-to-earnings-growth ratio of 1.77 and a beta of 0.57. 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 (NYSE:LW) last released its earnings results on Thursday, April 5th. The specialty retailer reported $0.91 earnings per share for the quarter, topping 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 during the quarter, compared to the consensus estimate of $813.81 million. During the same period last year, the company earned $0.59 earnings per share. The business’s revenue for the quarter was up 12.3% compared to the same quarter last year. sell-side analysts anticipate that Lamb Weston will post 2.61 earnings per share for the current year.

Several hedge funds have recently added to or reduced their stakes in LW. Ferris Capital LLC bought a new position in Lamb Weston in the fourth quarter worth about $309,000. Employees Retirement System of Texas raised its holdings in Lamb Weston by 49.9% in the fourth quarter. Employees Retirement System of Texas now owns 483,666 shares of the specialty retailer’s stock worth $27,303,000 after purchasing an additional 161,000 shares in the last quarter. Sei Investments Co. raised its holdings in Lamb Weston by 3.4% in the fourth quarter. Sei Investments Co. now owns 156,934 shares of the specialty retailer’s stock worth $8,859,000 after purchasing an additional 5,154 shares in the last quarter. Goldman Sachs Group Inc. raised its holdings in Lamb Weston by 0.9% in the fourth quarter. Goldman Sachs Group Inc. now owns 939,845 shares of the specialty retailer’s stock worth $53,054,000 after purchasing an additional 8,769 shares in the last quarter. Finally, Quadrature Capital Ltd bought a new position in Lamb Weston in the fourth quarter worth about $537,000. Hedge funds and other institutional investors own 81.56% of the company’s stock.

About Lamb Weston

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.

Analyst Recommendations for Lamb Weston (NYSE:LW)

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