Needham analyst Matt McGinley has maintained their bullish stance on UTZ stock, giving a Buy rating yesterday.
Matt McGinley has given his Buy rating due to a combination of factors surrounding UTZ Brands’ operational efficiency and strategic growth. In 2023, the company made significant progress by concentrating on its ‘Power Brands’ and enhancing its supply chain and brand portfolio. Although these changes put pressure on revenue and margins, UTZ still achieved organic revenue growth, a considerable increase in EBITDA, and a substantial boost in operating cash flow. These improvements set the stage for continued positive momentum going forward.
Looking ahead to 2024, McGinley anticipates that UTZ will extend the initiatives from the previous year, further optimizing its supply chain and divesting non-core brands. The result is expected to be an increase in organic revenue growth, an expansion in gross margin, and reinvestment into the business. Furthermore, projections include a significant growth in cash flow. The expectation is that UTZ Brands will transition from being a regional player to a national competitor, creating a virtuous cycle of growth and efficiency as they execute their three-year plan.
According to TipRanks, McGinley is a 4-star analyst with an average return of 6.8% and a 40.54% success rate.
In another report released yesterday, Jefferies also reiterated a Buy rating on the stock with a $22.00 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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