Stifel raised the firm’s price target on Lamb Weston to $65 from $60 and keeps a Hold rating on the shares after the company reported a better than expected first quarter, including a stronger top-line performance. To address the current supply/demand imbalance, Lamb Weston announced a restructuring program, and the company reiterated its revenue guidance, which the firm believes now incorporates more growth in International, while lowering its EBITDA outlook to the low-end of its initial range, incorporating higher production costs. Capacity reductions provide greater confidence in pricing stabilizing, but the firm expects pricing to remain pressured into FY26, the analyst added.
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