Analyst Robert Moskow of TD Cowen maintained a Hold rating on UTZ Brands (UTZ – Research Report), reducing the price target to $14.00.
Robert Moskow has given his Hold rating due to a combination of factors impacting UTZ Brands. The recent decline in stock price is largely attributed to market concerns over a potential increase in promotional activities following a net price decline in the first quarter. Although some of these concerns may be exaggerated due to temporary factors, there are ongoing worries about weak demand in the salty snacks category.
Despite positive indicators such as organic growth, share gains, and margin expansion, there is an expectation that promotional intensity might increase again due to persistent weak consumption trends. Additionally, the company’s valuation is expected to remain under pressure due to modest organic growth projections and high debt leverage, especially in a volatile macroeconomic environment. These elements contribute to a cautious outlook, justifying the Hold rating.
In another report released on April 23, UBS also initiated coverage with a Hold rating on the stock with a $15.00 price target.