AJ Secrist from Firstlight Management discussed his thesis for Lamb Weston (LW). LW is a very strong business, and AJ thinks the market is missing just how much margin upside there is as COVID era deals with large customers reprice and the company laps 2021’s disastrous potato crop.

Chapters
0:00 Intro
2:25 LW Overview
9:35 LW Valuation
13:00 Isn’t LW fully valued at these prices?
19:25 Discussing the current potato crop
26:55 Global margin upside
28:35 Why is scale an advantage for LW?
31:45 Why will LW’s margins accelerate now?
34:30 Industry demand and supply dynamics
37:20 Capital allocation and share buybacks
41:30 Management incentives and share price targets
45:00 Potential private equity or BRK end games
48:10 A little more discussion on LW’s potential P/E multiple
51:10 What happens if we have a low carb craze again?

Source