Lamb Weston (NYSE:LW) Downgraded by BNP Paribas Exane to Neutral

BNP Paribas Exane lowered shares of Lamb Weston (NYSE:LW) from an outperform rating to a neutral rating in a research report released on Monday, MarketBeat Ratings reports.

LW has been the subject of several other research reports. Cowen reissued a “hold” rating on shares of Lamb Weston in a research report on Wednesday, October 1st. Weiss Ratings reiterated a “hold (c-)” rating on shares of Lamb Weston in a research note on Monday, December 15th. Wells Fargo & Company lifted their target price on Lamb Weston from $66.00 to $68.00 and gave the company an “overweight” rating in a research report on Wednesday, October 1st. BNP Paribas lowered shares of Lamb Weston to a “neutral” rating in a research report on Monday. Finally, Stifel Nicolaus cut their target price on Lamb Weston from $63.00 to $50.00 and set a “hold” rating for the company in a research report on Monday. Three research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $59.40.

Lamb Weston Stock Down 2.3%

Shares of NYSE:LW opened at $42.95 on Monday. The company has a current ratio of 1.43, a quick ratio of 0.64 and a debt-to-equity ratio of 2.08. The stock has a fifty day simple moving average of $60.09 and a two-hundred day simple moving average of $57.08. Lamb Weston has a 12-month low of $42.45 and a 12-month high of $68.61. The stock has a market capitalization of $5.98 billion, a price-to-earnings ratio of 15.45, a PEG ratio of 4.03 and a beta of 0.44.

Lamb Weston (NYSE:LW) last issued its quarterly earnings results on Friday, December 19th. The specialty retailer reported $0.69 earnings per share for the quarter, beating the consensus estimate of $0.68 by $0.01. The firm had revenue of $1.62 billion during the quarter, compared to the consensus estimate of $1.59 billion. Lamb Weston had a return on equity of 27.71% and a net margin of 6.06%.The company’s revenue was up 1.1% on a year-over-year basis. During the same period last year, the company earned $0.66 earnings per share. On average, research analysts anticipate that Lamb Weston will post 3.1 earnings per share for the current fiscal year.

Lamb Weston Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, February 27th. Investors of record on Friday, January 30th will be given a $0.38 dividend. This is an increase from Lamb Weston’s previous quarterly dividend of $0.37. The ex-dividend date of this dividend is Friday, January 30th. This represents a $1.52 dividend on an annualized basis and a yield of 3.5%. Lamb Weston’s dividend payout ratio is currently 53.24%.

Institutional Trading of Lamb Weston

Hedge funds and other institutional investors have recently bought and sold shares of the business. Hudson Bay Capital Management LP bought a new stake in Lamb Weston during the 3rd quarter valued at about $719,000. Allworth Financial LP lifted its stake in shares of Lamb Weston by 40.1% during the 3rd quarter. Allworth Financial LP now owns 1,817 shares of the specialty retailer’s stock worth $106,000 after purchasing an additional 520 shares during the last quarter. Swiss Life Asset Management Ltd bought a new stake in shares of Lamb Weston in the 3rd quarter valued at about $347,000. ARQ Wealth Advisors LLC acquired a new stake in Lamb Weston in the third quarter valued at approximately $568,000. Finally, CIBC Private Wealth Group LLC boosted its position in shares of Lamb Weston by 48.6% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 3,275 shares of the specialty retailer’s stock worth $190,000 after purchasing an additional 1,071 shares in the last quarter. Hedge funds and other institutional investors own 89.56% of the company’s stock.

Key Lamb Weston News

Here are the key news stories impacting Lamb Weston this week:

• Positive Sentiment: Unusually large bullish options activity — investors bought roughly 9,763 call options on Monday (≈263% above the average daily call volume), signaling speculative bullish interest that can provide short‑term buying support.
• Neutral Sentiment: Bank of America cut its price target from $66 to $53 and set a “neutral” rating; the $53 target still implies upside vs. the current level, leaving room for recovery if guidance/margins stabilize. Benzinga coverage
• Neutral Sentiment: Analysts and outlets are highlighting LW’s S&P 500 exposure and how international revenues are evolving — coverage that may keep the name in focus for index/ETF flows and international‑revenue re‑ratings. Lamb Weston S&P exposure
• Neutral Sentiment: Several market writeups are positioning Lamb Weston as “on sale” amid the pullback, which can attract value‑oriented buyers if fundamentals improve. Why LW shares are on sale
• Negative Sentiment: Earnings aftermath: coverage says LW beat the quarter but issued weak guidance and flagged margin pressures, prompting a valuation reassessment — a key driver of the downward move as investors focus on near‑term profitability. Valuation reassessment after earnings
• Negative Sentiment: Company warnings of profit pressure from increased discounting and higher input costs have been highlighted by multiple outlets, reinforcing concerns about compressing margins and near‑term earnings risk. Profit pressure warning
• Negative Sentiment: Press reports and analyst commentary say price discounts have materially pressured profits, driving a sharp selloff in recent sessions. Barron’s: discounts pressured profits
• Negative Sentiment: Analyst tone has cooled: BNP Paribas Exane downgraded LW from “outperform” to “neutral,” adding to bearish sentiment and reducing buy‑side conviction (no link provided for the downgrade item).
• Negative Sentiment: Technical/market signal — the stock recently hit a new 52‑week low in mid‑Dec amid thining support, a bearish indicator that can trigger more selling from momentum and stop‑loss orders. 52-week low coverage

Lamb Weston Company Profile

Lamb Weston, traded on the NYSE under the symbol LW, is a leading global processor and supplier of frozen potato products. The company’s portfolio includes a variety of potato-based items such as French fries, potato wedges, hash browns and specialty cuts tailored to the foodservice and retail grocery channels. Lamb Weston serves quick-service restaurants, full-service operators, grocery chains and food distributors, offering customized product formats, packaging solutions and seasoning options to meet evolving customer demands.

Founded in 1950 and headquartered in Eagle, Idaho, Lamb Weston has grown from a regional processor into one of the world’s largest producers of frozen potato products.