Barclays Sees Lamb Weston (LW) Selloff as Overdone, Cuts Price Target

Lamb Weston Holdings, Inc. (NYSE:LW) is included among the 13 Best Consumer Staples Dividend Stocks to Invest successful Now.

On December 23, Barclays chopped its terms people connected Lamb Weston Holdings, Inc. (NYSE:LW) to $55 from $68 and kept an Overweight standing connected the shares. The steadfast acknowledged capitalist vexation aft the institution posted a first-half fiscal 2026 EBITDA bushed without raising guidance. Even so, Barclays said the broader gallic fry manufacture backdrop remains “bright,” and the 26% selloff successful the banal that followed was overdone.

A fewer days earlier, connected December 18, Lamb Weston Holdings, Inc. (NYSE:LW) said it was holding its full-year income outlook dependable for the 2nd clip this year. That came contempt the institution easy beating quarterly expectations. Analysts astatine Jefferies noted that reaffirming guidance aft specified a bushed points to a softer 2nd fractional than the marketplace had anticipated.

Consumer behaviour is portion of the story. Ongoing ostentation and commercialized uncertainty person pushed radical to chopped backmost connected non-essential spending, including eating out. That has reduced postulation astatine restaurants, a cardinal request operator for frozen murphy products. International income roseate 4% twelvemonth implicit twelvemonth successful the 2nd quarter. In North America, which generates astir of the company’s revenue, income were level astatine $1.07 billion. The institution besides faces tariff hazard tied to imported inputs specified arsenic thenar oil, adjacent arsenic prices for different earthy materials, including potatoes, person eased.

Lamb Weston kept its yearly gross forecast astatine $6.35 cardinal to $6.55 billion. The midpoint of that scope sits beneath the $6.52 cardinal statement estimate, based connected LSEG data. For the 4th ended November 23, the institution reported gross of $1.62 billion, topping expectations of $1.59 billion. Adjusted net came successful astatine 69 cents per share, up of the 65-cent estimate.

Lamb Weston Holdings, Inc. (NYSE:LW) operates arsenic a planetary producer, distributor, and marketer of value-added frozen murphy products.

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