Analyst Peter Galbo from Bank of America Securities reiterated a Buy rating on UTZ Brands and keeping the price target at $17.00.
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Peter Galbo has given his Buy rating due to a combination of factors that highlight UTZ Brands’ potential for growth and recovery. Despite a selloff following a lower EPS guidance, the company’s adjusted EBITDA for the second quarter of 2025 slightly exceeded expectations, driven by better-than-anticipated gross margins. UTZ also raised its organic sales outlook and adjusted EBITDA growth expectations, indicating a positive trajectory in its financial performance.
Furthermore, UTZ’s strategic decision to close one of its plants to consolidate production and improve efficiency demonstrates a commitment to optimizing operations. The company’s forecast for the third quarter includes organic sales growth and gross margin expansion, which supports a positive outlook. Galbo believes that the market’s negative reaction to the EPS guidance is mechanical and expects the stock to recover, maintaining a Buy rating with a price objective of $17 based on a target EV/EBITDA multiple.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $16.00 price target.
UTZ’s price has also changed slightly for the past six months – from $13.360 to $13.030, which is a -2.47% drop .