Citi Reiterates Buy Rating on Lamb Weston (LW)

Citi analyst Thomas Palmer reiterated a Buy rating and $75.00 price target on Lamb Weston (NYSE: LW).

The analyst comments "This evening LW announced fiscal 1Q25 (August) EPS of $0.73, a penny above consensus, with a 6% sales beat (pricing and volume) and lower SG&A offsetting a gross margin miss. The company reiterated its FY25 sales outlook and lowered SG&A, but lowered its EPS and EBITDA outlooks, which implies that a reduced gross margin outlook is the main culprit. LW also announced that it is closing its plant in Connell, WA (effective immediately) and temporary shutting down lines elsewhere. We expect to learn more on tomorrow’s earnings call (10AM ET). We think the guidance cut will probably be the bigger focus tomorrow because it seems to signal stepped up price competition. The plant closure might not be a major surprise at this point (we discussed the possibility in our preview), but we are encouraged to see LW take some initial steps to drive industry utilization rates higher."

For an analyst ratings summary and ratings history on Lamb Weston click here. For more ratings news on Lamb Weston click here.

Shares of Lamb Weston closed at $64.91 yesterday.

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