Lamb Weston Holdings Gets a Buy Rating from Jefferies

Jefferies analyst Akshay Jagdale maintained a Buy rating on Lamb Weston Holdings (NYSE: LW) today and set a price target of $71. The company’s shares opened today at $65.72, close to its 52-week high of $68.70.

Jagdale wrote:

“LW’s stock is down on the news that Mexico has imposed a 20% tariff on US frozen potato exports. Given our view that Mexico represents 1-2% of LW’s sales, the tariff is likely temporary & a good portion of the volumes will be sourced from other NA exporters (Canada), we believe the impact will be relatively immaterial on LW & the industry. Specifically, we estimate the tariff will impact LW’s EPS by less than 1% & industry utilization rates between 20-60 bps.”

According to TipRanks.com, Jagdale is a 4-star analyst with an average return of 5.0% and a 53.3% success rate. Jagdale covers the Consumer Goods sector, focusing on stocks such as McCormick & Company, J & J Snack Foods, and Pilgrim’s Pride.

Lamb Weston Holdings has an analyst consensus of Moderate Buy, with a price target consensus of $71.

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Based on Lamb Weston Holdings’ latest earnings release for the quarter ending February 28, the company reported a quarterly net profit of $156 million. In comparison, last year the company had a net profit of $75.4 million.

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Lamb Weston Holdings, Inc. produce, provides, and markets value-added frozen potato products. It operates through the following segments: Global, Foodservice, Retail, and Other. The Global segment includes branded and private label frozen potato products sold in North America and international markets.