Lamb Weston price target lowered to $68 from $80 at Stifel

Stifel analyst Matthew Smith lowered the firm’s price target on Lamb Weston (LW) to $68 from $80 and keeps a Hold rating on the shares following a “disappointing quarter,” driven by weaker than expected sales and gross margin, reflecting continued pressure from volume deleverage and operational inefficiencies. Lamb is addressing the challenging environment, implementing a restructuring plan and reducing its capacity footprint, notes the analyst, who believes Lamb is “a unique asset,” but adds that the current pressures on the business make a takeout at a significant premium from here “less likely.”