Is Wall Street Bullish or Bearish on Lamb Weston Stock?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 16 2025
0mins
Source: NASDAQ.COM
Company Overview and Stock Performance: Lamb Weston Holdings, Inc. has a market cap of $7.3 billion and specializes in frozen potato products. However, its stock has underperformed with a 39.8% decline over the past year, contrasting with positive returns from the S&P 500 and agriculture ETFs.
Earnings Report and Analyst Ratings: Following a strong Q3 earnings report showing revenue growth and adjusted earnings surpassing estimates, LW stock received a "Moderate Buy" rating from analysts, with a mean price target indicating potential upside from current prices despite expected EPS decline for the current year.
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Analyst Views on LW
Wall Street analysts forecast LW stock price to rise
9 Analyst Rating
3 Buy
6 Hold
0 Sell
Moderate Buy
Current: 42.120
Low
48.00
Averages
54.44
High
65.00
Current: 42.120
Low
48.00
Averages
54.44
High
65.00
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.
Lamb Weston Faces Securities Class Action Lawsuit Risks
- Lawsuit Background: Lamb Weston Holdings, Inc. is facing a securities class action lawsuit from investors who purchased its securities between July 25, 2023, and April 3, 2024, due to undisclosed significant issues with its Enterprise Resource Planning (ERP) software system.
- Financial Losses: The disastrous rollout of the new ERP system resulted in a $135 million loss in sales during Q3 of fiscal 2024 and necessitated a $330 million reduction in the company's full-year sales guidance, severely impacting its financial outlook.
- Stock Price Volatility: Following the April 4, 2024, disclosure of the ERP issues, Lamb Weston's stock price plummeted by $19.59 per share, indicating a significant loss of investor confidence that could affect future investment decisions.
- Litigation Progress: On May 12, 2026, the court partially granted and denied the defendants' motion to dismiss, allowing the litigation to proceed, which means the company will face ongoing legal challenges that could have long-term implications for its reputation and financial stability.
See More
Starboard Value Reports $4.57B Q1 Portfolio Value with Qorvo as Top Holding
- Portfolio Value: Starboard Value reported a first-quarter portfolio value of $4.57 billion, with Qorvo accounting for 13% of total holdings, indicating strong confidence in Qorvo and potential implications for future investment strategies.
- Client and Asset Management: As of March 6, 2026, Starboard managed approximately $8.15 billion in assets with 11 clients, reflecting its solid position and appeal in the hedge fund industry.
- Major Holdings Analysis: The fund held 7.51 million shares of Qorvo worth about $581 million, followed by Kenvue with 27.31 million shares valued at approximately $470.78 million, showcasing a diversified investment strategy in technology and consumer goods sectors.
- Quant Ratings Overview: Among Starboard's top 15 holdings, Kenvue and Acacia Research received quant ratings of 4.37 and 4.60 respectively, indicating their market potential and attractiveness to investors, which may influence investment decisions.
See More
Starboard Value Initiates New Positions in Consumer Stocks
- New Investment Positions: Activist investor Starboard Value initiated new positions in two consumer stocks, Lamb Weston and Carmax, valued at approximately $258 million as of March 31, indicating a strategic focus on the consumer sector.
- Strong Quarterly Performance: In the first quarter, Lamb Weston saw a nearly 2% increase in stock price, while Carmax jumped over 7%, reflecting an improvement in market performance and a potential recovery in consumer demand.
- Divergent Year-to-Date Trends: Despite Lamb Weston gaining over 5% in 2026, Carmax has fallen more than 4%, highlighting a significant divergence in their market trajectories that could influence investor decisions moving forward.
- Increased Stake in Bitcoin Stock: Starboard also raised its position in Riot Platforms by 22%, and although the stock declined more than 2% in the quarter, it has surged over 85% this year, demonstrating ongoing confidence in digital infrastructure investments.
See More
Starboard Value Adds Positions in CarMax and Lamb Weston
- New Investment Moves: Starboard Value added positions in CarMax and Lamb Weston during Q1, acquiring 6.2M and 6.1M shares valued at $258M each, indicating strong confidence that could drive stock price appreciation.
- Portfolio Diversification: The hedge fund also increased its stakes in Riot Platforms and TripAdvisor, with 2.8M and 1.13M shares respectively, demonstrating a strategic intent to diversify its portfolio and capture growth opportunities across different markets.
- Stake Reduction Strategy: Starboard reduced its holdings in Gen Digital, Clearwater Analytics, Healthcare Realty, Fluor, and Becton Dickinson by over 1.5M shares in total, reflecting a cautious outlook on these companies' prospects, which may impact their future market performance.
- Board Changes: CarMax appointed two new directors recently, one of whom was nominated by Starboard, a move that could influence the company's strategic direction and governance structure, thereby enhancing investor confidence.
See More
Halper Sadeh LLC Investigates Lamb Weston Executives' Fiduciary Duties
- Shareholder Rights Protection: Halper Sadeh LLC is investigating whether certain executives of Lamb Weston Holdings, Inc. breached their fiduciary duties, which could lead to corporate governance reforms and fund recovery, thereby enhancing shareholder value if violations are confirmed.
- Legal Fee Arrangement: The firm operates on a contingency fee basis, meaning shareholders will not incur out-of-pocket legal expenses, which reduces the financial burden on shareholders and encourages more to actively protect their rights.
- Importance of Shareholder Participation: Involvement from shareholders can improve company policies and oversight mechanisms, promoting transparency and accountability, which enhances management efficiency and shareholder value, highlighting the power of collective action.
- Global Investor Representation: Halper Sadeh LLC represents investors worldwide, focusing on combating securities fraud and corporate misconduct, and has successfully implemented corporate reforms that have recovered millions for defrauded investors, showcasing its expertise in protecting investor rights.
See More
Lamb Weston Appoints New CFO and Grants Stock Awards
- Executive Appointment: Lamb Weston appointed James D. Gray as Chief Financial Officer on April 2, 2026, aiming to enhance financial performance and boost investor confidence through his extensive financial management experience.
- Stock Award Plan: The company granted 15,096 restricted stock units to Gray on May 11, 2026, as a dollar-for-dollar match on his personal investment, reflecting the company's commitment to valuing his long-term contributions.
- Vesting Schedule: These restricted stock units will vest at 33%, 33%, and 34% on May 11, 2027, May 9, 2028, and May 8, 2029, respectively, ensuring Gray's alignment with the company's performance over the next three years to drive growth.
- Compliance Statement: The grant of these stock awards was made in reliance on the employment inducement exemption under NYSE's Listed Company Manual Rule 303A.08, ensuring transparency and compliance with regulatory requirements.
See More
Lamb Weston Faces Securities Class Action Lawsuit Risks
- Lawsuit Background: Lamb Weston Holdings, Inc. is facing a securities class action lawsuit from investors who purchased its securities between July 25, 2023, and April 3, 2024, due to undisclosed significant issues with its Enterprise Resource Planning (ERP) software system.
- Financial Losses: The disastrous rollout of the new ERP system resulted in a $135 million loss in sales during Q3 of fiscal 2024 and necessitated a $330 million reduction in the company's full-year sales guidance, severely impacting its financial outlook.
- Stock Price Volatility: Following the April 4, 2024, disclosure of the ERP issues, Lamb Weston's stock price plummeted by $19.59 per share, indicating a significant loss of investor confidence that could affect future investment decisions.
- Litigation Progress: On May 12, 2026, the court partially granted and denied the defendants' motion to dismiss, allowing the litigation to proceed, which means the company will face ongoing legal challenges that could have long-term implications for its reputation and financial stability.
See More
Starboard Value Reports $4.57B Q1 Portfolio Value with Qorvo as Top Holding
- Portfolio Value: Starboard Value reported a first-quarter portfolio value of $4.57 billion, with Qorvo accounting for 13% of total holdings, indicating strong confidence in Qorvo and potential implications for future investment strategies.
- Client and Asset Management: As of March 6, 2026, Starboard managed approximately $8.15 billion in assets with 11 clients, reflecting its solid position and appeal in the hedge fund industry.
- Major Holdings Analysis: The fund held 7.51 million shares of Qorvo worth about $581 million, followed by Kenvue with 27.31 million shares valued at approximately $470.78 million, showcasing a diversified investment strategy in technology and consumer goods sectors.
- Quant Ratings Overview: Among Starboard's top 15 holdings, Kenvue and Acacia Research received quant ratings of 4.37 and 4.60 respectively, indicating their market potential and attractiveness to investors, which may influence investment decisions.
See More
Starboard Value Initiates New Positions in Consumer Stocks
- New Investment Positions: Activist investor Starboard Value initiated new positions in two consumer stocks, Lamb Weston and Carmax, valued at approximately $258 million as of March 31, indicating a strategic focus on the consumer sector.
- Strong Quarterly Performance: In the first quarter, Lamb Weston saw a nearly 2% increase in stock price, while Carmax jumped over 7%, reflecting an improvement in market performance and a potential recovery in consumer demand.
- Divergent Year-to-Date Trends: Despite Lamb Weston gaining over 5% in 2026, Carmax has fallen more than 4%, highlighting a significant divergence in their market trajectories that could influence investor decisions moving forward.
- Increased Stake in Bitcoin Stock: Starboard also raised its position in Riot Platforms by 22%, and although the stock declined more than 2% in the quarter, it has surged over 85% this year, demonstrating ongoing confidence in digital infrastructure investments.
See More
Starboard Value Adds Positions in CarMax and Lamb Weston
- New Investment Moves: Starboard Value added positions in CarMax and Lamb Weston during Q1, acquiring 6.2M and 6.1M shares valued at $258M each, indicating strong confidence that could drive stock price appreciation.
- Portfolio Diversification: The hedge fund also increased its stakes in Riot Platforms and TripAdvisor, with 2.8M and 1.13M shares respectively, demonstrating a strategic intent to diversify its portfolio and capture growth opportunities across different markets.
- Stake Reduction Strategy: Starboard reduced its holdings in Gen Digital, Clearwater Analytics, Healthcare Realty, Fluor, and Becton Dickinson by over 1.5M shares in total, reflecting a cautious outlook on these companies' prospects, which may impact their future market performance.
- Board Changes: CarMax appointed two new directors recently, one of whom was nominated by Starboard, a move that could influence the company's strategic direction and governance structure, thereby enhancing investor confidence.
See More
Halper Sadeh LLC Investigates Lamb Weston Executives' Fiduciary Duties
- Shareholder Rights Protection: Halper Sadeh LLC is investigating whether certain executives of Lamb Weston Holdings, Inc. breached their fiduciary duties, which could lead to corporate governance reforms and fund recovery, thereby enhancing shareholder value if violations are confirmed.
- Legal Fee Arrangement: The firm operates on a contingency fee basis, meaning shareholders will not incur out-of-pocket legal expenses, which reduces the financial burden on shareholders and encourages more to actively protect their rights.
- Importance of Shareholder Participation: Involvement from shareholders can improve company policies and oversight mechanisms, promoting transparency and accountability, which enhances management efficiency and shareholder value, highlighting the power of collective action.
- Global Investor Representation: Halper Sadeh LLC represents investors worldwide, focusing on combating securities fraud and corporate misconduct, and has successfully implemented corporate reforms that have recovered millions for defrauded investors, showcasing its expertise in protecting investor rights.
See More
Lamb Weston Appoints New CFO and Grants Stock Awards
- Executive Appointment: Lamb Weston appointed James D. Gray as Chief Financial Officer on April 2, 2026, aiming to enhance financial performance and boost investor confidence through his extensive financial management experience.
- Stock Award Plan: The company granted 15,096 restricted stock units to Gray on May 11, 2026, as a dollar-for-dollar match on his personal investment, reflecting the company's commitment to valuing his long-term contributions.
- Vesting Schedule: These restricted stock units will vest at 33%, 33%, and 34% on May 11, 2027, May 9, 2028, and May 8, 2029, respectively, ensuring Gray's alignment with the company's performance over the next three years to drive growth.
- Compliance Statement: The grant of these stock awards was made in reliance on the employment inducement exemption under NYSE's Listed Company Manual Rule 303A.08, ensuring transparency and compliance with regulatory requirements.
See More
