Utz Brands initiated with a Neutral at UBS

UBS initiated coverage of Utz Brands (UTZ) with a Neutral rating and $15 price target implying 9% potential upside. The firm’s analysis suggests Utz can continue to gain share in U.S. salty snacks through strong performance and execution in core markets coupled with distribution gains in expansion markets, but believes it is unlikely that salty snacks category trends will improve in the coming months given the current U.S. consumer backdrop, the analyst tells investors in a research note. Strong productivity and a more benign cost environment should support the bottom line, but UBS expects shares to remain range bound until visibility on top line growth improves.