Analysts grow more confident in Lamb Weston's outlook
LW•Lamb Weston raised its annual sales and profit forecasts after first-quarter results beat expectations, citing resilient demand for frozen potato products from quick-service restaurants. The median price target from 13 brokerages was $55.
1. Forecasts raised
Lamb Weston raised its annual sales and profit forecasts on Tuesday after first-quarter results beat expectations. The company cited resilient demand for frozen potato products from quick-service restaurants.
2. Analyst views
Jefferies said North American momentum remained intact, citing new customer wins, exposure to faster-growing chicken restaurants and improving pricing. It also said weaker European potato crops, plant closures and tightening supply were contributing to improving conditions and international margin recovery. TD Cowen said stronger-than-expected North American results and confidence in contract pricing eased concerns about freight costs and weak traffic at restaurant customers such as McDonald's.
