UTZ Brands, the Consumer Defensive sector company, was revisited by a Wall Street analyst yesterday. Analyst Peter Galbo from Bank of America Securities maintained a Buy rating on the stock and has a $14.00 price target.
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Peter Galbo has given his Buy rating due to a combination of factors that, in his view, support UTZ’s long-term value despite near-term challenges. He acknowledges that fourth-quarter organic sales growth came in below both his estimates and market expectations, pressured by weaker consumer demand in November tied to reduced SNAP benefits and an unexpected inventory drawdown in the warehouse channel. However, he notes that shipment patterns normalized by year-end and views the destocking as a one-off event rather than a structural issue, with the company maintaining the midpoint of its full-year adjusted EBITDA outlook.
Galbo’s positive stance is reinforced by his confidence in UTZ’s longer-term growth drivers, particularly its ability to gain market share and expand distribution, including ongoing progress in California. While he trims his price objective from $15 to $14 to reflect a slightly lower valuation multiple amid recent operational setbacks, he still sees meaningful upside from the current share price. In his view, the combination of resilient earnings, temporary nature of the recent disruptions, and solid strategic growth initiatives justifies maintaining a Buy rating on the stock.
In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a $20.00 price target.
Based on the recent corporate insider activity of 65 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of UTZ in relation to earlier this year.