Barclays Sees Lamb Weston (LW) Selloff as Overdone, Cuts Price Target

Company Overview - Lamb Weston Holdings, Inc. (NYSE:LW) is recognized as one of the best consumer staples dividend stocks to invest in currently [1] Financial Performance - For the quarter ended November 23, Lamb Weston reported revenue of $1.62 billion, exceeding expectations of $1.59 billion [5] - Adjusted earnings were 69 cents per share, surpassing the estimate of 65 cents [5] - The company maintained its annual revenue forecast at $6.35 billion to $6.55 billion, which is below the consensus estimate of $6.52 billion [5] Market Sentiment - Barclays has cut its price target for Lamb Weston from $68 to $55 while maintaining an Overweight rating, citing that the recent 26% selloff in the stock was overdone [2] - Despite a strong first-half fiscal 2026 EBITDA performance, the company did not raise its guidance, leading to investor frustration [2][3] Industry Context - The broader french fry industry outlook remains positive, despite challenges such as ongoing inflation and trade uncertainties affecting consumer spending [2][4] - International sales increased by 4% year over year in the second quarter, while North American sales remained flat at $1.07 billion [4]