TD Cowen analyst Robert Moskow has maintained their neutral stance on UTZ stock, giving a Hold rating on July 17.
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Robert Moskow has given his Hold rating due to a combination of factors affecting UTZ Brands. Despite the company raising its 2025 sales guidance following a strong second-quarter sales performance, there are concerns about the company’s ability to translate this sales growth into profit. The EBITDA margin has declined due to necessary investments, and the EBITDA guidance remains largely unchanged, which has contributed to investor apprehension.
Furthermore, while UTZ has benefited from a rational promotional strategy by market leader PepsiCo, allowing it to gain market share and expand distribution, the required investments in infrastructure and marketing have impacted profitability. The company has shown strong consumption growth and increased its sales guidance, but the anticipated acceleration in EBITDA growth in the latter half of the year poses a significant challenge. These factors combined have led to the Hold rating, reflecting uncertainty about the company’s ability to meet its ambitious growth targets.
In another report released on July 17, UBS also maintained a Hold rating on the stock with a $15.00 price target.