Lamb Weston Holdings: JP Morgan Downgrades to Neutral, PT Drops to $57

Lamb Weston Holdings: JP Morgan Downgrades to Neutral, PT Drops to $57

July 02, 2025

JP Morgan has downgraded Lamb Weston Holdings, Inc. (LW) to a Neutral rating and reduced its price target to $57, as reported on July 2, 2025. The move comes after a period of mixed analyst sentiments and market performance for the Idaho-based company, which specializes in the production, distribution, and marketing of frozen potato products.

Lamb Weston Holdings, Inc. has been underperforming the broader market and its sector peers over the past year. The stock has plunged 11.4% over the past 52 weeks and nearly 19% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 16.4% gains over the past year and 9.7% returns on a YTD basis [1].

However, the company has shown signs of recovery in recent quarters. In the second half of fiscal 2025, Lamb Weston gained momentum with customer wins and retention, leading to a 4% year-over-year growth in net sales to $1.7 billion and an 8% growth in adjusted net income to $122.8 million [1].

Despite these positive earnings reports, analysts remain split on Lamb Weston's prospects. As of July 2, 2025, the consensus rating is a Moderate Buy, with four Strong Buys and eight Holds among the 12 analysts covering the stock [1].

The recent downgrade by JP Morgan follows a series of price target adjustments by other major financial institutions. In the past few months, analysts have adjusted their price targets for Lamb Weston, reflecting a range of market views. For instance, Barclays raised its price target to $68 in July 2025, while Deutsche Bank lowered it to $57 in the same month [2].

The mixed analyst sentiment and the recent downgrade by JP Morgan highlight the uncertainty surrounding Lamb Weston's stock performance. The company's strong fundamentals, such as its operational efficiency and growth prospects in the food sector, provide a positive outlook. However, technical indicators and cautious institutional investor sentiments suggest a neutral stance in the short term [3].

References:

[1] https://www.barchart.com/story/news/34214079/are-wall-street-analysts-predicting-lamb-weston-stock-will-climb-or-sink
[2] https://www.marketscreener.com/quote/stock/LAMB-WESTON-HOLDINGS-INC-31862637/consensus/
[3] https://www.ainvest.com/news/stock-analysis-lamb-weston-holdings-outlook-strong-fundamentals-mixed-technicals-rising-food-sector-interest-2508/