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Analysts have increased their average price target for Lamb Weston Holdings from approximately $63.73 to $66.00. They cite improving volume growth in North America, stronger gross margins, and growing confidence in the company’s commercial recovery as key factors for the revision.

Analyst Commentary

• Bullish analysts noted that Lamb Weston started fiscal 2026 with stronger-than-expected volume growth in North America, signaling improved demand momentum.
• Gross margins have exceeded previous forecasts, reflecting operational efficiency and pricing power in a challenging market.
• There is increased confidence in the company's ability to recover commercially, with recent new business wins and the resumption of a previously curtailed production line serving as evidence.
• Expectations for a return of price and mix contribution to growth in North America are viewed as key drivers of potential upside in valuation.

• Bearish analysts remain cautious about Lamb Weston's ability to restore volume and margins to historical levels, citing ongoing challenges in the operating environment.
• Price target adjustments, including downward revisions, indicate limited visibility into near-term volume trends and continued caution regarding customer demand.
• Some highlight the persistence of price and mix headwinds, as management has maintained a conservative outlook for the remainder of the fiscal year.
• The overall sector is navigating slower growth and margin pressures, which could affect Lamb Weston’s pace of recovery and market share gains.

What's in the News

• The company completed a buyback tranche by repurchasing 187,259 shares for $10.36 million between May 26, 2025 and August 24, 2025. This brings total shares repurchased under the plan to 11,401,150 or 7.92% for $777.66 million (Key Developments).
• Lamb Weston Holdings reaffirmed its earnings guidance for fiscal 2026, maintaining a net sales target range of $6.35 billion to $6.55 billion at constant currency. The guidance considers current tariffs but does not include potential future trade policy changes (Key Developments).
• For 2026, the company expects net sales to reflect a range from a 2% decline to 2% growth. A stronger second half is anticipated due in part to an additional fiscal week and expected improvements in price and mix trends later in the year (Key Developments).
• Between February 24, 2025 and May 25, 2025, Lamb Weston repurchased 1,895,228 shares for $99.92 million, contributing to the overall buyback progress announced in December 2018 (Key Developments).

Valuation Changes

• Consensus Analyst Price Target has increased from $63.73 to $66.00. This reflects a modest upward revision in anticipated value.
• Discount Rate remains unchanged at 6.78%, which indicates stable risk and return assumptions in the valuation model.
• Revenue Growth projection has risen from 1.32% to 1.80%. This suggests a brighter outlook for top-line expansion.
• Net Profit Margin has improved from 8.21% to 8.79%. This shows expected gains in profitability.
• Future P/E (Price-to-Earnings) multiple has decreased from 18.17x to 17.45x. This implies a marginally more attractive valuation relative to forward earnings.