Lamb Weston price target lowered to $46 from $54 at Wells Fargo

Wells Fargo lowered the firm’s price target on Lamb Weston (LW) to $46 from $54 and keeps an Overweight rating on the shares. The firm notes the company delivered Q3 upside, but a modest FY26 raise stoked debate on recovery trajectory. Near-term headwinds were previously conveyed coming out of Q2, but perhaps now more contemplated given greater implied Q4 deceleration and potential implications to FY27, with Middle East and inflation incremental negatives, Wells adds. The firm tempers its FY27 outlook on limited margin/International visibility with lesser impact to out years. Wells continues to focus on North America turnaround where over 85% of segment profit resides.