Added to YB: 2024-09-11
Pitch date: 2024-09-09
LW [bullish]
Lamb Weston Holdings, Inc.
-3.21%
current return
Author Info
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Company Info
Lamb Weston Holdings, Inc. engages in the production, distribution, and marketing of frozen potato products in the United States, Canada, Mexico, and internationally.
Market Cap
$7.9B
Pitch Price
$61.64
Price Target
78.00 (+31%)
Dividend
2.60%
EV/EBITDA
9.19
P/E
27.44
EV/Sales
1.83
Sector
Food Products
Category
value
Quick Value #234 - Lamb Weston (LW)
LW: Frozen potato producer, #1 in N.A., #2 globally. Down 55% from 2023 peak. 4Q24 weak: sales -5%, EPS -40%, EBITDA -15%. FY25 guidance flat. Industry overcapacity due to capex projects. FCF to improve post-FY25 as capex normalizes. At 9x EBITDA, 13.7x P/E. $78 PT at 10.5x EBITDA. Risks: prolonged demand weakness, high capex.
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