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

Lamb Weston (NYSE:LW) had its price target lowered by Wells Fargo & Company from $68.00 to $54.00 in a report released on Tuesday,Benzinga reports. The firm currently has an “overweight” rating on the specialty retailer’s stock. Wells Fargo & Company‘s price target would suggest a potential upside of 29.34% from the stock’s previous close.

A number of other equities analysts also recently commented on the company. Deutsche Bank Aktiengesellschaft reduced their price objective on Lamb Weston from $61.00 to $49.00 and set a “hold” rating on the stock in a research report on Monday. Barclays set a $55.00 target price on Lamb Weston in a research report on Tuesday. Zacks Research downgraded Lamb Weston from a “strong-buy” rating to a “hold” rating in a report on Friday, December 12th. Cowen reaffirmed a “hold” rating on shares of Lamb Weston in a research note on Wednesday, October 1st. Finally, Sanford C. Bernstein set a $65.00 target price on shares of Lamb Weston and gave the stock a “market perform” rating in a research report on Wednesday, October 1st. Three equities research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $56.70.

Lamb Weston Price Performance

Shares of LW traded down $1.05 during midday trading on Tuesday, hitting $41.75. 326,070 shares of the company traded hands, compared to its average volume of 2,218,104. The firm has a market cap of $5.82 billion, a P/E ratio of 15.11, a PEG ratio of 4.03 and a beta of 0.44. The stock has a 50-day moving average of $60.09 and a 200-day moving average of $57.08. The company has a debt-to-equity ratio of 2.08, a current ratio of 1.43 and a quick ratio of 0.64. Lamb Weston has a one year low of $42.00 and a one year high of $68.61.

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

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. State Street Corp increased its position in shares of Lamb Weston by 1.1% during the second quarter. State Street Corp now owns 5,801,585 shares of the specialty retailer’s stock valued at $300,812,000 after acquiring an additional 63,865 shares in the last quarter. Invesco Ltd. boosted its stake in shares of 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 purchasing an additional 79,257 shares during the period. Norges Bank purchased a new stake in Lamb Weston in the 2nd quarter valued at about $119,413,000. Capital Research Global Investors raised its position in Lamb Weston by 46.3% during the 3rd quarter. Capital Research Global Investors now owns 2,150,000 shares of the specialty retailer’s stock valued at $124,872,000 after purchasing an additional 680,000 shares in the last quarter. Finally, Gates Capital Management Inc. boosted its holdings in shares of 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 valued at $107,460,000 after buying an additional 670,611 shares in the last quarter. 89.56% of the stock is owned by hedge funds and other institutional investors.

Key Stores Impacting Lamb Weston

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

• Positive Sentiment: Unusually large options activity — investors bought roughly 9,763 call contracts in a single session (≈+263% vs. average), suggesting some speculative or hedge-driven bullish interest that can support short-term buying. Options Flow Report
• Neutral Sentiment: Analysts and research pieces are largely neutral on the consumer-packaged-goods group, with Stifel maintaining a ‘hold’ and broad coverage noting Lamb Weston’s S&P 500 exposure — these keep institutional positioning cautious rather than outright bearish. Analysts Are Neutral on Top Consumer Goods Stocks: Lamb Weston Holdings (LW), Conagra Brands (CAG)
• Neutral Sentiment: Coverage notes and market summaries (BayStreet, Kalkine) highlight active trading and index exposure; useful for context but not a direct catalyst. Lamb Weston (NYSE:LW) Shares Active as S&P 500 Exposure Highlighted
• Negative Sentiment: BNP Paribas Exane downgraded LW from ‘outperform’ to ‘neutral’, and Bank of America cut its price target from $66 to $53 while keeping a neutral rating — analyst moves are weighing on sentiment and reduce upside conviction. Finviz / Coverage Note
• Negative Sentiment: Recent analysis highlights weak guidance and margin pressures despite an EPS beat, prompting a valuation reassessment that pressures the stock multiple. Lamb Weston (LW): Reassessing Valuation After Earnings Beat, Weak Guidance and Margin Pressures
• Negative Sentiment: Opinion pieces argue Lamb Weston has sustained technical underperformance and persistent selling since mid-2023 — this narrative reinforces bearish sentiment among momentum-focused investors. What’s Driving Lamb Weston’s Sustained Underperformance
• Neutral Sentiment: Deep-dive coverage on international revenues discusses shifting geographic mix and implications for growth forecasts — important for medium-term thesis but not an immediate catalyst. International Markets and Lamb Weston (LW): A Deep Dive for Investors

About Lamb Weston

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.