From Financial Modeling Prep: 2024-10-03 12:14:00

Barclays analysts raised Lamb Weston’s price target to $74 from $70 with an Overweight rating after Q1 beat. Recent actions, like closing a facility and reducing production, aim to improve potato processing capacity utilization to low to mid-90%. Competitors likely in similar range, maintaining pricing discipline. Capacity management could protect pricing amid increased trade spending.

Improvement in restaurant traffic trends could help close supply/demand imbalance quicker. Rising demand and industry-wide supply reductions may help processors like Lamb Weston retain pricing power. Barclays anticipates this trend continuing, benefiting companies in the industry historically.



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