In a report released today, Akshay Jagdale from Jefferies maintained a Buy rating on Lamb Weston Holdings (NYSE: LW), with a price target of $80. The company’s shares closed yesterday at $65.94.
Jagdale observed:
“1Q sales, gross profit and EBITDA were better than expectations. Price/ mix (core to our thesis) was significantly better than expected as was volume. Moreover, FY19 EBITDA guidance was maintained despite the expected negative impact from a poor crop in Europe (we estimate ~$20-$30M impact), implying much better results in North America. We expect the stock to outperform today owing to the strong beat and better than feared guidance. Solid 1Q beat driven by stronger than expected sales and gross profit. Net sales beat our estimate by ~$44M or ~5% and consensus by $35 or 4%. Both volume and price/ mix came in significantly better than we were projecting – volume came in at +4% vs. our estimate of +2% and price/mix came in at +8% vs. our estimate of +4.5% – as each segment beat our expectations (with particular strength in the Global and Retail segments).”
According to TipRanks.com, Jagdale is a 3-star analyst with an average return of 3.0% and a 49.2% success rate. Jagdale covers the Consumer Goods sector, focusing on stocks such as McCormick & Company, J & J Snack Foods, and Pilgrim’s Pride.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Lamb Weston Holdings with a $74 average price target.
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Lamb Weston Holdings’ market cap is currently $9.65B and has a P/E ratio of 23.38. The company has a Price to Book ratio of -28.82.
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Lamb Weston Holdings, Inc. engages in the production, distribution, and marketing of value-added frozen potato products. It operates through the following business segments: Global, Foodservice, Retail, and Other. The Global segment includes branded and private label frozen potato products sold in North America and international markets.
