Shares of Lamb Weston Holdings Inc fell by 3.01%, hitting a 52-week low. This decline comes as the company faces significant profit pressure due to lowered prices aimed at attracting customers, despite reporting a 1% year-over-year net sales growth to $1.62 billion. The stock's performance reflects ongoing challenges in pricing and competition, leading to a decline in adjusted gross profit and concerns about margin sustainability.
The drop in Lamb Weston shares is attributed to profit pressure from pricing strategies, despite the company exceeding revenue estimates. The adjusted gross profit fell to $327.9 million from $343.5 million a year ago, indicating that the pricing actions taken to attract customers have negatively impacted profitability. Management has reaffirmed its fiscal 2026 guidance, but the market remains cautious amid these challenges.
Investors are closely monitoring Lamb Weston’s ability to navigate these pricing pressures and maintain profitability. The company's focus on cost savings and volume growth in North America may provide some support, but the competitive landscape and pricing dynamics will be critical in determining future performance.
Wall Street analysts forecast LW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LW is 54.44 USD with a low forecast of 48.00 USD and a high forecast of 65.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
Wall Street analysts forecast LW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LW is 54.44 USD with a low forecast of 48.00 USD and a high forecast of 65.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Buy
6 Hold
0 Sell
Moderate Buy
Current: 45.470
Low
48.00
Averages
54.44
High
65.00
Current: 45.470
Low
48.00
Averages
54.44
High
65.00
Barclays
Overweight
maintain
$68 -> $55
2025-12-23
Reason
Barclays
Price Target
$68 -> $55
AI Analysis
2025-12-23
maintain
Overweight
Reason
Barclays lowered the firm's price target on Lamb Weston to $55 from $68 and keeps an Overweight rating on the shares. The firm understands the investor frustration with the company reporting a first half of fiscal 2026 EBITDA beat with no guidance raise. While french fry industry dynamics are all "bright," Friday's 26% stock selloff is overdone, the analyst tells investors in a research note.
BNPP
Outperform -> Neutral
downgrade
$48
2025-12-22
Reason
BNPP
Price Target
$48
2025-12-22
downgrade
Outperform -> Neutral
Reason
BNPP downgraded Lamb Weston to Neutral from Outperform with a $48 price target.
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Deutsche Bank
Hold
downgrade
$61 -> $49
2025-12-22
Reason
Deutsche Bank
Price Target
$61 -> $49
2025-12-22
downgrade
Hold
Reason
Deutsche Bank lowered the firm's price target on Lamb Weston to $49 from $61 and keeps a Hold rating on the shares. The firm sees a "longer road ahead" for the company post the fiscal Q2 report.
BNP Paribas
Outperform -> Neutral
downgrade
$66 -> $48
2025-12-22
Reason
BNP Paribas
Price Target
$66 -> $48
2025-12-22
downgrade
Outperform -> Neutral
Reason
As previously reported, BNP Paribas downgraded Lamb Weston to Neutral from Outperform with a price target of $48, down from $66. The stock in late morning trading is down 2% to $43.03. While the company's improved volumes suggest there is demand for bottomless fries, BNP prefers to be on the sidelines when Lamb Weston's profit "appears to have no bottom," the analyst tells investors in a research note. The firm says the company is seeing ramped up international competition while its volume gains come with negative mix implications.
About LW
Lamb Weston Holdings, Inc. is a global producer, distributor, and marketer of value-added frozen potato products. The Company is a supplier of frozen potato, sweet potato, appetizer and vegetable products to restaurants and retailers around the globe. The Company’s segments include North America and International. The Company’s frozen potato products are sold in North America and international markets generally to North American-based restaurant chains and international customers, comprised of global and regional quick service and full-service restaurant chains, foodservice distributors, and retailers. Its product portfolio includes frozen potatoes and appetizers sold under the Lamb Weston brand, as well as many customer labels. The Company’s product categories include classic fries, extra crispy fries, sweet potatoes, and other products. Its recipes include appetizers, desserts, dips, sauces and seasonings, entree, salad, side dishes, and topped and loaded.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
