In a report released today, Robert Moskow from TD Cowen maintained a Hold rating on Lamb Weston Holdings (LW – Research Report), with a price target of $62.00.
Robert Moskow has given his Hold rating due to a combination of factors impacting Lamb Weston Holdings. The company has shown some positive signs by surpassing third-quarter sales and earnings expectations, but concerns remain about the quality of these results. The guidance for the fourth quarter suggests a challenging start to fiscal year 2026, with issues such as poor cost absorption and declining quick-service restaurant traffic weighing on the outlook.
Despite these challenges, there are some positive developments, such as anticipated cost reductions that have led to an increase in the fiscal year 2025 earnings per share estimate. However, the North American segment, which accounts for a significant portion of sales, is expected to face volume declines and competitive pressures. Additionally, there is uncertainty surrounding the recovery of gross margins, as the company deals with excess inventory and high production costs. The ongoing efforts to optimize business operations with the help of Alix Partners may provide some relief, but the full impact of these initiatives remains to be seen.
In another report released today, Stifel Nicolaus also maintained a Hold rating on the stock with a $63.00 price target.
Based on the recent corporate insider activity of 47 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of LW in relation to earlier this year.