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April 5, 2021, 12:19 p.m. EDT

Lamb Weston stock rallies after BofA analyst said it's time to buy, ahead of earnings report

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By Tomi Kilgore

Shares of Lamb Weston Holdings Inc. /zigman2/quotes/205501174/composite LW +0.70% hiked up 2.4% in midday trading Monday, after BofA Securities analyst Bryan Spillane recommended investors buy ahead of earnings, as the frozen potato products seller is set to approach pre-COVID levels amid pent-up consumer demand for eating out. Spillane raised his rating to buy from neutral, while lifting his stock price target to $100 from $84. His target now tops the list of highest targets of the 8 analysts surveyed by FactSet. "Overall restaurant demand is improving and we are seeing positive signals across quick serve restaurants (QSR) and foodservice operators that could drive margin-accretive revenue growth for [Lamb Weston] heading into FY22," Spillane wrote in a note to clients. He said food distributors are adding staff in anticipation of a strong rebound in foodservice sales, which are set to accelerate at demand improves. The company is expected to report fiscal third-quarter results before Wednesday's opening bell. In fiscal second quarter ended Nov. 29, foodservice sales fell 21% from a year ago while total sales fell 12%. The stock has edged up 1.5% year to date, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.65% has gained 8.6%.

/zigman2/quotes/205501174/composite
US : U.S.: NYSE
$ 78.60
+0.55 +0.70%
Volume: 194,085
May 7, 2021 2:38p
P/E Ratio
46.13
Dividend Yield
1.20%
Market Cap
$11.42 billion
Rev. per Employee
$492,519
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/zigman2/quotes/210599714/realtime
US : S&P US
4,228.87
+27.25 +0.65%
Volume: 1.31B
May 7, 2021 2:41p
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