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On Friday, DA Davidson reaffirmed its Buy rating and $16.00 price target for Utz Brands (NYSE:UTZ) shares, which currently trade at $11.82. According to InvestingPro data, analysts’ targets range from $15 to $20, suggesting significant upside potential. The research firm’s analyst, Brian Holland, maintained the positive stance on the snack company following an assessment of its recent performance.
Holland noted that the first quarter of 2025 saw Utz Brands surpassing top-line expectations, though he suggested the nature of this beat might not be sustainable. The company, which generates annual revenue of $1.41 billion, has maintained a dividend yield of 2.01% and has raised its dividend for five consecutive years. Despite this, the analyst emphasized that his valuation model did not rely on these results being repeated.
The company’s sales of salty snacks have been soft, and there has been underperformance in its core markets, with revenue declining 2.01% over the last twelve months. Nonetheless, Utz Brands is seeing better-than-expected results in its expansion territories. Additionally, the Boulder Canyon brand has become a significant contributor to the company’s success. InvestingPro analysis suggests the stock is currently undervalued, with 12 additional exclusive insights available to subscribers.
Another positive highlight from the company’s recent performance is its supply chain transformation. According to Holland, Utz Brands is excelling in this area, which has enabled it to maintain its EBITDA levels. This efficiency allows the company to continue investing in initiatives to support sales without compromising profitability.
DA Davidson’s stance on Utz Brands remains unchanged as the company navigates the challenges and opportunities within the snack food industry. The $16.00 price target suggests that the firm sees potential for the stock to grow from its current levels.
In other recent news, Utz Brands Inc. reported its first-quarter earnings for 2025, meeting analyst expectations with an earnings per share (EPS) of $0.16. The company’s revenue slightly exceeded forecasts, reaching $352.1 million compared to the anticipated $345.61 million. Despite these positive financial results, the stock experienced a decline of 6.85%, which may be attributed to broader market conditions and specific company factors. The Boulder Canyon and On the Border brands contributed to growth with new product launches and expanded distribution, highlighting the company’s ongoing strategy to increase market share.
In terms of company strategy, Utz Brands is focusing on winding down its bonus pack program while planning to invest approximately 1% in pricing strategies and distribution gains. Analyst firms have not issued recent upgrades or downgrades, but the company’s future projections suggest steady growth with an emphasis on expanding market presence. The company has also seen household penetration reach an all-time high of 49%, showcasing its ability to capture consumer interest. These developments indicate Utz Brands’ commitment to innovation and maintaining brand strength in the competitive snack food industry.
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