UTZ Brands (UTZ – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst yesterday. Analyst Peter Galbo from Bank of America Securities reiterated a Hold rating on the stock and has a $19.00 price target.
Peter Galbo has given his Hold rating due to a combination of factors such as the company’s fourth-quarter performance aligning with earlier predictions but showing minimal sales growth. UTZ Brands’s net sales saw a slight decrease, with a nominal decline in organic sales, which was somewhat mitigated by a positive volume/mix increase and a slight drop in price. The company did, however, manage to improve gross margins owing to productivity gains and a favorable sales mix, which helped to counteract the impact of cost inflation and supply chain investments. Additionally, selling, distribution, and administrative expenses decreased, contributing to the company’s steady financial position.
Looking forward, UTZ Brands’s financial outlook for the next fiscal year matches market consensus estimates, anticipating organic sales growth and adjusted EBITDA to slightly increase. However, their growth expectations fall short of their longer-term targets, with anticipated organic sales growth being less robust. Adjustments to Galbo’s EBITDA forecasts were made due to the divestiture of certain brands, which is expected to reduce sales but also help in reducing debt through the proceeds. The valuation maintains a premium for UTZ shares considering the brand’s position within the competitive salty snack category, hence supporting the Neutral rating and a price objective that reflects these diverse yet balanced considerations.
Galbo covers the Consumer Defensive sector, focusing on stocks such as Monster Beverage, UTZ Brands, and Conagra Brands. According to TipRanks, Galbo has an average return of 2.6% and a 48.98% success rate on recommended stocks.
In another report released yesterday, D.A. Davidson also initiated coverage with a Hold rating on the stock with a $20.00 price target.
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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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