TD Cowen analyst Robert Moskow has maintained their neutral stance on UTZ stock, giving a Hold rating yesterday.
Claim 50% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Robert Moskow has given his Hold rating due to a combination of factors related to both near-term volatility and longer-term fundamentals. He views the recent fourth-quarter sales shortfall as largely temporary, tied to retailer inventory reductions following a sharp slowdown in November sales driven by government shutdown and SNAP-related disruptions. Although shipments and consumption improved in December and retailers appear committed to UTZ’s shelf space, the recovery was not strong enough to fully erase the quarter’s weakness, and recent sales growth has decelerated versus the prior quarter.
At the same time, Moskow maintains confidence in UTZ’s ability to grow modestly ahead of the salty snacks category over the next few years, supported in part by the expanded distribution opportunity in California, which should add incremental revenue. However, he expects more limited EBITDA margin expansion than in the past because the route acquisition is margin-dilutive, tempering the earnings upside from that growth. Overall, the combination of credible long-term growth drivers, offset by earnings headwinds and the company’s sensitivity to a volatile demand and retail environment, leads him to a balanced risk‑reward view that supports a Hold rather than a more aggressive rating.
In another report released yesterday, TipRanks – Anthropic also reiterated a Hold rating on the stock with a $9.50 price target.