On Wednesday, Piper Sandler confirmed its Overweight rating on Utz Brands shares, listed on the New York Stock Exchange under the ticker NYSE:UTZ, with a steady price target of $21.00. The firm's endorsement follows a visit to the company's headquarters, where analysts met with CEO Howard Friedman and CFO Ajay Kataria.
The analysts believe that Utz Brands is on track to meet its growth targets for 2024, citing strong top-line momentum and productivity initiatives. The company's three-year objectives are not only achievable but also potentially surpassable, according to Piper Sandler. The firm anticipates Utz Brands will continue to see sustainable distribution growth across various regions and channels.
Piper Sandler noted that Utz Brands has completed its SKU rationalization, which has eliminated a drag on the top line, allowing the company to concentrate on its higher growth, higher margin Power Brands. The company has made significant improvements in planning, procuring, pricing, and marketing, which are expected to contribute to future efficiency gains.
The firm has maintained its sales estimates for Utz Brands, projecting approximately $1,435 million in sales for 2024 and around $1,485 million for 2025. The reaffirmed $21 price target reflects Piper Sandler's confidence in the company's growth trajectory and operational improvements.
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