Stifel Upgrades Lamb Weston (LW) to Buy

Stifel analyst Christopher R. Growe upgraded Lamb Weston (NYSE: LW) from Hold to Buy with a price target of $89.00 (from $80.00).

The analyst commented, "We are upgrading the shares of Lamb Weston to Buy from Hold as we look forward to a period of robust revenue and profit growth for the company in relation to a valuation level that we believe does not fully account for the rebuilding of growth in sales and EBITDA. We are establishing an $89 target price for the shares. Lamb Weston remains a key beneficiary of the increase in consumer mobility in the U.S. and around the world. We expect sales to benefit from mobility, but also improved product mix (LTOs for example), strong pricing, and new channels. Pricing will likely more than overcome cost inflation and lower COVID costs should aid its margins as well. The company’s Win as One program could create more capacity, production flexibility, and cost savings. We expect the shares to start to reflect the strong sales and EBITDA growth inflection."

For an analyst ratings summary and ratings history on Lamb Weston click here. For more ratings news on Lamb Weston click here.

Shares of Lamb Weston closed at $77.14 yesterday.

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