Buy Rating on UTZ Brands: Strategic Consolidation and Distribution Expansion Signal Growth Potential

Analyst Robert Dickerson from Jefferies reiterated a Buy rating on UTZ Brands (UTZ – Research Report) and keeping the price target at $22.00.

Robert Dickerson has given his Buy rating due to a combination of factors indicating UTZ Brands’ proactive business strategies. One of the key reasons for this optimistic stance is the company’s recent sale of two manufacturing facilities, a move that reflects their commitment to streamlining operations. This strategic consolidation not only enhances supply chain efficiency but also serves to reduce UTZ’s financial leverage by allowing the company to pay down its debt. Such measures are seen as positive steps toward fostering a more profitable business model in the long term.

Additionally, Dickerson recognizes the potential for UTZ Brands to drive revenue growth by expanding its distribution network. He notes that UTZ has a significant opportunity to increase its market presence in the United States, where it is currently under-penetrated compared to its competitors. The ability to tap into these new markets and distribution channels is a key driver that could support the company’s top-line growth going forward, further justifying the Buy rating assigned to UTZ’s stock.

In another report released on April 9, RBC Capital also maintained a Buy rating on the stock with a $19.00 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.