Jefferies analyst Robert Dickerson has maintained their bullish stance on LW stock, giving a Buy rating on April 7.
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Robert Dickerson has given his Buy rating due to a combination of factors influencing Lamb Weston Holdings. The company recently surpassed expectations in its third fiscal quarter, which was a positive indicator after several quarters of downward revisions. Despite facing challenges such as soft traffic in quick-service restaurants and increased international industry capacity, the management is actively seeking strategic advice to explore opportunities for value creation and operational improvements.
Moreover, Lamb Weston is navigating through inflationary pressures and is in the process of negotiating contracts for the upcoming potato harvest, with expectations of stable pricing in Europe. The company is also working on regaining lost customers and balancing supply and demand, which suggests a longer recovery period. However, the potential for a takeover remains attractive given the current valuation of its integrated assets. The price target set by the analyst reflects a premium based on future EBITDA estimates, indicating confidence in the company’s strategic direction.
Dickerson covers the Consumer Defensive sector, focusing on stocks such as McCormick & Company, Conagra Brands, and Mondelez International. According to TipRanks, Dickerson has an average return of 3.0% and a 54.92% success rate on recommended stocks.
In another report released on April 7, Barclays also maintained a Buy rating on the stock with a $69.00 price target.