60%+ returns in 2025: Here’s how AI-powered stock investing has changed the game
Investing.com - Mizuho lowered its price target on Utz Brands (NYSE:UTZ) to $16.00 from $19.00 on Monday, while maintaining an Outperform rating on the snack food company’s stock.
The price target reduction follows Utz Brands’ 12.6% stock decline on October 30, compared to the flat performance of the Consumer Staples Select Sector SPDR Fund. The sell-off reflected investor concerns about the company’s fiscal year 2026 EBITDA and margin growth outlook.
Mizuho cited several factors behind its revised target, including planned reinvestment to support geographic expansion, moderating productivity savings, and weak category sales performance. Despite these near-term challenges, the firm believes Utz’s long-term growth outlook has strengthened.
The research firm noted that Utz’s mergers and acquisitions activity in California should accelerate its presence in the United States’ largest market for salty snacks. Additionally, capital expenditures, which previously concerned investors, are expected to decline materially in fiscal year 2026, enhancing free cash flow.
Mizuho reduced its fiscal year 2026 EBITDA estimate to $232 million from $244 million due to reinvestment and productivity factors, but maintained Utz as a top pick, suggesting the current valuation provides an attractive entry point for growth-at-reasonable-price investors.
In other recent news, Utz Brands reported better-than-expected third-quarter revenue, driven by strong volume-based net sales that surpassed analyst and consensus estimates. The company also announced plans to expand its presence in California, which is the largest market for salty snacks in the United States. This expansion is expected to enhance the company’s growth outlook. DA Davidson has maintained its Buy rating for Utz Brands, setting a price target of $16.00 following the company’s robust third-quarter performance. The third-quarter adjusted EBITDA came in slightly above expectations, further boosting investor confidence. These developments have positively influenced the company’s market perception.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.