The Eagle, Idaho-based Lamb Weston Holdings, Inc. (LW) is a leading supplier of frozen potato products, primarily serving the foodservice and retail sectors. The company, valued at a market cap of $8.3 billion, is renowned for its high-quality, innovative potato products, including French fries, hash browns, and specialty items.
Shares of the frozen foods supplier have significantly underperformed the broader market over the past 52 weeks. LW has notably lagged behind the broader market, falling 43.2%, while the S&P 500 Index ($SPX) has risen 22.3%. In 2025, Lamb Weston shares have dropped nearly 12.5%, compared to a 4% increase in the SPX.
Narrowing the focus, LW has also lagged behind the Consumer Staples Select Sector SPDR Fund’s (XLP) 10.9% rise over the past 52 weeks and 2.5% return on a YTD basis.
Despite a tough year for Lamb Weston, the company's shares rose more than 2% on Dec. 27, outperforming the S&P 500. This gain followed the release of an amended 13D filing, which disclosed that activist investor Jana Partners LLC had acquired a significant stake in the company, driving heightened investor focus on its future direction.
For the current fiscal year, ending in May 2025, analysts expect LW’s EPS to decline 39% year-over-year to $3.10. The company’s earnings surprise history is grim. It missed the consensus estimates in three of the last four quarters while meeting only on another occasion.
Among the 11 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on four “Strong Buy” ratings and seven “Holds.”
This configuration is less bullish than two months ago, with five “Strong Buy” ratings on the stock.
On Dec. 23, Andrew Lazar from Barclays reaffirmed a “Buy” rating on Lamb Weston and set a price target of $69.
The mean price target of $68.45 represents a premium of only 17.1% to LW’s current levels. The Street-high target of $80 indicates an upswing potential of 36.8%.
