Lamb Weston price target raised to $76 from $75 at Citi

Citi raised the firm’s price target on Lamb Weston to $76 from $75 and keeps a Buy rating on the shares. The firm says “there was a lot to unpack” in the fiscal Q1 earnings release with a sales and earnings beat on pricing, the fiscal 2025 earnings outlook reduced for gross margin, and plant and line closures were announced. Citi thinks the key takeaways are that price competition is not worse than feared, Lamb is taking action to drive capacity utilization rates higher, and the guidance reduction for fixed cost deleverage is related to the company’s decision to work through excess finished good inventory. Lamb’s revised outlook seems prudent, and sentiment could continue to shift in the stock’s favor, the analyst tells investors in a research note.