Update shared on04 Sep 2025
Fair value Increased 0.29%Analysts have lowered their earnings expectations and applied discounted valuation multiples to Lamb Weston Holdings due to sluggish category growth, market share losses, and ongoing margin uncertainty, resulting in a consensus price target that remains steady at $63.55.
Analyst Commentary
- Increased caution across the food producer sector due to slower center store category growth and ongoing market share losses.
- Uncertainty in earnings recovery for agricultural-related companies, with potential upside linked to pending U.S. biofuels regulations.
- Lowered earnings estimates reflecting expectations for adjusted EBITDA margins below previously guided ranges.
- Reduced price targets as analysts incorporate a discount to historical price-to-earnings multiples, driven by limited near-term volume visibility.
- Bullish analysts remain constructive on the sector but acknowledge headwinds, leading to tempered price outlooks despite maintaining positive ratings.
What's in the News
- Repurchased 1,895,228 shares for $99.92 million, completing a total buyback of 11,213,891 shares (7.79%) for $767.3 million under an ongoing program.
- Provided 2026 earnings guidance with net sales expected between $6.35 billion and $6.55 billion, reflecting a 2% decline to 2% growth; stronger sales anticipated in the second half due to an additional fiscal week; price/mix expected to decline in both halves of the fiscal year.
- Dropped from several Russell Growth indices (3000E Growth, Midcap Growth, 3000 Growth, 1000 Growth); added to Russell 2500 and 2500 Value indices.
- Entered a Cooperation Agreement with JANA Partners and Continental Grain to expand the board to 13 directors, accept resignations of four existing directors, and appoint six new directors.
- JANA Partners entered into a Nominee Agreement with Robert Bradshaw Henske.
Valuation Changes
Summary of Valuation Changes for Lamb Weston Holdings
- The Consensus Analyst Price Target remained effectively unchanged, at $63.55.
- The Consensus Revenue Growth forecasts for Lamb Weston Holdings remained effectively unchanged, at 1.3% per annum.
- The Net Profit Margin for Lamb Weston Holdings remained effectively unchanged, at 8.26%.
Disclaimer
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