BNP downgrades Lamb Weston on lack of earnings bottom

As previously reported, BNP Paribas downgraded Lamb Weston (LW) to Neutral from Outperform with a price target of $48, down from $66. The stock in late morning trading is down 2% to $43.03. While the company’s improved volumes suggest there is demand for bottomless fries, BNP prefers to be on the sidelines when Lamb Weston’s profit “appears to have no bottom,” the analyst tells investors in a research note. The firm says the company is seeing ramped up international competition while its volume gains come with negative mix implications.