• 繁

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Lamb Weston (LW) Valuation Check After Q2 Beat, Cautious Guidance and Sharp Share Price Pullback

    Simply Wall St·12/25/2025 03:46:49
    語音播報

    Lamb Weston Holdings (LW) has turned into a battleground stock after its Q2 earnings, with volume growth and an upbeat dividend move colliding with cautious guidance, tighter margins, and a wave of skeptical analyst reactions.

    See our latest analysis for Lamb Weston Holdings.

    The stock is still digesting that guidance shock, with the 7 day share price return of minus 28.56 percent and a 30 day share price return of minus 24.84 percent dragging the 1 year total shareholder return to minus 31.57 percent. This is a clear sign that momentum has swung sharply against the name, even as buybacks, a dividend increase, and ongoing plant investments reflect management’s focus on longer term recovery potential if margins stabilize.

    If Lamb Weston’s reset has you rethinking your watchlist, this could be a good moment to explore fast growing stocks with high insider ownership as potential new ideas with relatively stronger momentum characteristics.

    With the share price now deeply underwater relative to history and consensus targets, yet guidance signaling at least another year of pressured margins, are investors staring at a mispriced cash generator or a stock that already reflects muted growth?

    Most Popular Narrative: 35.6% Undervalued

    With Lamb Weston trading at $42.48 against a narrative fair value of $66, the valuation gap implies investors are heavily discounting its recovery roadmap.

    The analysts have a consensus price target of $63.727 for Lamb Weston Holdings based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $80.0, and the most bearish reporting a price target of just $57.0.

    Read the complete narrative.

    Want to see what powers that higher value, despite sluggish revenue forecasts and only gradual margin expansion? Curious how future earnings and lower share count reshape the profit math? The full narrative breaks down the assumptions driving that long term earnings step up and the lower valuation multiple it still leans on to get there.

    Result: Fair Value of $66 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, persistent restaurant traffic softness and price or mix pressure, especially in key QSR channels, could undermine the expected volume recovery and margin rebuild.

    Find out about the key risks to this Lamb Weston Holdings narrative.

    Build Your Own Lamb Weston Holdings Narrative

    If you are not fully aligned with this view, or prefer to dig into the numbers yourself, you can build a complete narrative in just a few minutes: Do it your way.

    A great starting point for your Lamb Weston Holdings research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

    Looking for more investment ideas?

    If Lamb Weston has sharpened your focus on risk and reward, do not leave potential upside on the table when there are focused stock ideas waiting.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.