Barclays lowers Utz Brands stock price target to $16 from $17

Investing.com - Barclays (LON:BARC) maintained its Overweight rating on Utz Brands (NYSE:UTZ) stock but reduced its price target to $16.00 from $17.00 on Friday. The stock, currently trading at $12.75, remains below InvestingPro’s Fair Value estimate, with analyst targets ranging from $13.50 to $20.00.

The research firm adjusted its quarterly earnings expectations for the snack food company, shifting some EBITDA from the second quarter of 2025 to the second half of the year. This adjustment better reflects the phasing of investment spending and year-ago comparisons. The company’s current EBITDA stands at $125.26 million, with InvestingPro data showing 9 analysts have recently revised their earnings expectations downward for the upcoming period.

Despite the near-term adjustment, Barclays made no changes to its full-year forecast for Utz Brands. The firm expressed continued confidence in the company’s overall performance trajectory.

Barclays noted encouragement from recent measured channel tracking data for Utz products, particularly when compared to broader category trends. This positive performance in retail channels appears to be supporting the firm’s maintained Overweight rating.

The price target reduction represents a $1.00 decrease from the previous target of $17.00, while the firm’s fundamental outlook on the company remains positive.

In other recent news, Utz Brands reported its first-quarter earnings for 2025, meeting analyst expectations with an earnings per share (EPS) of $0.16 and surpassing revenue forecasts with $352.1 million, slightly above the anticipated $345.61 million. The company’s revenue beat reflects effective sales strategies and product innovations, particularly in its Boulder Canyon and On the Border brands. DA Davidson maintained a Buy rating for Utz Brands, setting a price target of $16, while noting that the company’s recent top-line performance might not be sustainable. Utz Brands also declared a quarterly dividend of $0.061 per share, scheduled for payment in July 2025, signaling its commitment to shareholder value. The Board of Directors emphasized that future dividends would depend on various factors, including operational results and financial conditions. Despite these developments, the company acknowledged challenges in its core markets, offset by better-than-expected results in expansion territories. The supply chain transformation at Utz Brands has been a highlight, enabling the company to maintain its EBITDA levels and invest in sales-supporting initiatives. These recent developments provide investors with insights into Utz Brands’ current performance and strategic direction.

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