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Fly News Breaks for June 19, 2019
LW
Jun 19, 2019 | 05:49 EDT
Goldman Sachs analyst Adam Samuelson upgraded Lamb Weston to Buy from Neutral with an unchanged price target of $76. After declining 18.6% year-to-date, the shares offer an" attractive valuation risk/reward," Samuelson tells investors in a research note. He believes concerns around growing potato industry capacity in 2019-2020 are overdone. Given a 1.3B pounds potato processing capacity increase in 2019-2020, industry capacity utilization remains greater than 95% at a low-point, Samuelson writes. He believes incumbent producers, not new entrants, are adding capacity, and that these utilization levels will not drive significant pricing/margin degradation for Lamb Weston.
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