Lamb Weston adjusting prices to regain market share, uncertainty remains on demand recovery

From Yahoo Finance: 2025-04-04 15:17:00

J.P. Morgan analyst Ken Goldman reiterated a Neutral rating on Lamb Weston Holdings, Inc. (NYSE: LW) and raised the price forecast from $65 to $66. The company reported third-quarter adjusted earnings per share of $1.10, beating the analyst consensus estimate of 87 cents, with quarterly sales of $1.521 billion.

Goldman cited medium-term risks in the French fry market tied to supply and demand imbalance. The analyst highlighted uncertainty in the industry’s current conditions, with limited visibility beyond the near term. The company is projected to adjust prices to regain market share, but doubts remain on demand growth matching supply.

Goldman noted potential upside factors for the company in fiscal year 2026, including new customer contracts, lower potato input costs, cost savings, and increased share repurchases. The analyst also highlighted risks such as pricing initiatives, challenges in the quick-service restaurant sector, rising fry supply, and uncertainties related to tariffs.

LW shares are trading lower by 0.55% to $59.25 at last check Friday. The analyst emphasized the difficulty in forecasting Lamb Weston’s performance beyond the upcoming quarter due to uncertainties surrounding fiscal year 2026. Additionally, FY26 will include an extra week, which could positively affect results.

Read more: Lamb Weston May Keep Cutting Prices To Win Back Market Share, But Demand Recovery Remains Uncertain