Matt McGinley, an analyst from Needham, has initiated a new Buy rating on UTZ Brands (UTZ).
Matt McGinley has given UTZ Brands a Buy rating driven by a well-devised strategy for the company’s transformation. McGinley notes that UTZ is transitioning effectively from a regional, family-run business into a formidable national presence in the salty snack sector. This evolution is supported by a streamlined manufacturing process and a sharpened focus on a quartet of core brands. These strategic moves are expected to generate productivity enhancements that will enable increased marketing investments and geographical expansion.
According to McGinley’s analysis, UTZ is poised for a sales growth trajectory that could surpass the overall product category for an extended period. With the brand’s expansion on a national scale, he foresees a consistent improvement in cash flow, coupled with the possibility of double-digit growth in EBITDA. Additionally, the analyst projects that UTZ could experience margin improvements that may exceed the forecasted 3 percentage points over the next three years, further cementing the stock’s Buy rating.
In another report released on December 20, Mizuho Securities also initiated coverage with a Buy rating on the stock with a $19.00 price target.
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Based on the recent corporate insider activity of 36 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of UTZ in relation to earlier this year.
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UTZ Brands (UTZ) Company Description:
Collier Creek Holdings is a blank check company, which engages in effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. The company was founded by Roger K. Deromedi, Jason K. Giordano, and Chinh E. Chu on April 30, 2018 and is headquartered in New York, NY.
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