Jefferies raises Lamb Weston stock price target to $67 on cost savings plan

Published 23/07/2025, 22:40
Jefferies raises Lamb Weston stock price target to $67 on cost savings plan

Investing.com - Jefferies raised its price target on Lamb Weston (NYSE:LW) to $67.00 from $60.00 on Wednesday, while maintaining a Buy rating on the food processing company’s stock. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics, with analyst targets ranging from $55 to $82.

The price target increase follows Lamb Weston’s fourth-quarter results, which Jefferies described as a "solid volume-led beat," noting that the company implemented price investments in North America to support customers and maintain market position. The company maintains strong financial health with a current ratio of 1.35, indicating sufficient liquidity to meet short-term obligations.

Lamb Weston announced its new "Focus to Win" program, which includes a cost savings initiative projected to generate more than $250 million in annual run rate savings by fiscal year-end 2028.

Jefferies indicated these savings could potentially bring Lamb Weston close to achieving a 23% EBITDA margin, representing a significant improvement in operational efficiency.

While the firm acknowledged that Lamb Weston’s fiscal 2026 guidance came in below expectations, Jefferies viewed the company’s "heightened sense of urgency" and clear quantification of expected impacts from the changes as "clear positives."

In other recent news, Lamb Weston Holdings Inc . reported impressive financial results for its fiscal fourth quarter of 2025. The company significantly exceeded expectations with an earnings per share (EPS) of $0.87, compared to the anticipated $0.64, representing a surprise of 35.94%. Additionally, Lamb Weston’s revenue reached $1.68 billion, surpassing the forecasted $1.59 billion by 5.66%. These results have caught the attention of investors and analysts alike. The positive earnings and revenue figures highlight the company’s strong performance in the recent quarter. Analysts from various firms have taken note of these developments, reflecting the market’s interest in Lamb Weston’s financial health. These recent developments underscore the company’s ability to outperform market expectations.

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