Wells Fargo & Company Cuts Lamb Weston (NYSE:LW) Price Target to $54.00

Lamb Weston (NYSE:LW) had its target price lowered by Wells Fargo & Company from $68.00 to $54.00 in a report published on Tuesday morning,Benzinga reports. The brokerage currently has an overweight rating on the specialty retailer’s stock.

Several other research analysts also recently weighed in on the company. BNP Paribas Exane downgraded Lamb Weston from an “outperform” rating to a “neutral” rating in a research note on Monday. Jefferies Financial Group boosted their target price on shares of Lamb Weston from $67.00 to $70.00 and gave the stock a “buy” rating in a report on Friday, December 12th. Zacks Research lowered shares of Lamb Weston from a “strong-buy” rating to a “hold” rating in a research report on Friday, December 12th. Sanford C. Bernstein set a $65.00 target price on shares of Lamb Weston and gave the company a “market perform” rating in a research note on Wednesday, October 1st. Finally, Cowen reiterated a “hold” rating on shares of Lamb Weston in a research note on Wednesday, October 1st. Three investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $54.18.

Lamb Weston Price Performance

NYSE LW opened at $42.39 on Tuesday. The company has a 50-day moving average price of $58.76 and a 200-day moving average price of $56.78. Lamb Weston has a 52 week low of $41.41 and a 52 week high of $68.61. The company has a quick ratio of 0.64, a current ratio of 1.43 and a debt-to-equity ratio of 2.08. The firm has a market capitalization of $5.89 billion, a P/E ratio of 15.25, a PEG ratio of 6.28 and a beta of 0.44.

Lamb Weston (NYSE:LW) last released its quarterly earnings results on Friday, December 19th. The specialty retailer reported $0.69 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.68 by $0.01. The business had revenue of $1.62 billion during the quarter, compared to analyst estimates of $1.59 billion. Lamb Weston had a return on equity of 27.71% and a net margin of 6.06%.Lamb Weston’s revenue for the quarter was up 1.1% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.66 earnings per share. Equities research analysts anticipate that Lamb Weston will post 3.1 earnings per share for the current year.

Lamb Weston Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, February 27th. Investors of record on Friday, January 30th will be issued a $0.38 dividend. The ex-dividend date is Friday, January 30th. This is an increase from Lamb Weston’s previous quarterly dividend of $0.37. This represents a $1.52 annualized dividend and a dividend yield of 3.6%. Lamb Weston’s dividend payout ratio is presently 53.24%.

Institutional Investors Weigh In On Lamb Weston

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. State Street Corp boosted its holdings in Lamb Weston by 1.1% in the second quarter. State Street Corp now owns 5,801,585 shares of the specialty retailer’s stock valued at $300,812,000 after purchasing an additional 63,865 shares during the last quarter. Invesco Ltd. raised its position in Lamb Weston by 2.5% during the third quarter. Invesco Ltd. now owns 3,286,305 shares of the specialty retailer’s stock valued at $190,869,000 after acquiring an additional 79,257 shares in the last quarter. Norges Bank acquired a new position in Lamb Weston in the second quarter valued at approximately $119,413,000. Capital Research Global Investors lifted its holdings in Lamb Weston by 46.3% in the third quarter. Capital Research Global Investors now owns 2,150,000 shares of the specialty retailer’s stock valued at $124,872,000 after acquiring an additional 680,000 shares during the period. Finally, Gates Capital Management Inc. boosted its position in Lamb Weston by 49.8% in the 1st quarter. Gates Capital Management Inc. now owns 2,016,142 shares of the specialty retailer’s stock worth $107,460,000 after purchasing an additional 670,611 shares in the last quarter. 89.56% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Lamb Weston

Here are the key news stories impacting Lamb Weston this week:

• Positive Sentiment: Management appears to be prioritizing buybacks and dividends, which investors interpret as a sign of confidence in margins and a commitment to return cash — a potential support for EPS and valuation. Does Lamb Weston (LW) Prioritizing Buybacks and Dividends Reveal Its Evolving Margin Strategy?
• Positive Sentiment: Barclays maintains an overweight recommendation on LW, providing a notable buy‑side endorsement from a major broker that can help stabilize sentiment. Barclays maintains Lamb Weston Holdings (LW) overweight recommendation
• Positive Sentiment: High‑volume purchases of LW call options signal speculative bullish interest from traders, suggesting some participants are betting on a rebound or event‑driven upside. Stock Traders Buy High Volume of Lamb Weston Call Options (NYSE:LW)
• Neutral Sentiment: TD Cowen trimmed its price target to $55 but kept a “hold” rating, signaling a modestly less bullish view while not moving to a sell stance. TD Cowen cuts price target on Lamb Weston to $55
• Neutral Sentiment: JPMorgan lowered its price target to $50 and kept a “neutral” rating — a downgrade to the price view but not to conviction, leaving room for upside if results improve. JPMorgan adjusts price target on Lamb Weston to $50
• Neutral Sentiment: Consensus analyst rating sits at “Hold,” reflecting mixed views among brokers and limiting near‑term conviction on a clear buy case. Lamb Weston (NYSE:LW) Receives Consensus Rating of “Hold”
• Negative Sentiment: Sanford C. Bernstein cut its price target sharply to $46 (from $65), signaling a materially lower mid‑cycle valuation expectation and contributing to selling pressure. Bernstein adjusts price target on Lamb Weston to $46
• Negative Sentiment: Wells Fargo issued a pessimistic forecast for LW, adding to the negative analyst momentum and pressuring investor confidence. Wells Fargo & Company Issues Pessimistic Forecast for Lamb Weston
• Negative Sentiment: Bank of America and BNP Paribas Exane also lowered expectations/ratings, reinforcing the downshift in sell‑side sentiment that’s weighing on the stock. Bank of America has lowered expectations for Lamb Weston Lamb Weston stock rating lowered by BNP Paribas Exane
• Negative Sentiment: Commentary pieces argue LW “doesn’t look like a great deal” after the selloff, which can amplify the negative narrative among retail and value investors. Lamb Weston Doesn’t Look Like A Great Deal After The Selloff

Lamb Weston Company Profile

Lamb Weston, traded on the NYSE under the symbol LW, is a leading global processor and supplier of frozen potato products. The company’s portfolio includes a variety of potato-based items such as French fries, potato wedges, hash browns and specialty cuts tailored to the foodservice and retail grocery channels. Lamb Weston serves quick-service restaurants, full-service operators, grocery chains and food distributors, offering customized product formats, packaging solutions and seasoning options to meet evolving customer demands.

Founded in 1950 and headquartered in Eagle, Idaho, Lamb Weston has grown from a regional processor into one of the world’s largest producers of frozen potato products.