UBS has initiated coverage on Utz Brands (UTZ, Financial) with a Neutral rating, setting a price target of $15. This target suggests a potential upside of 9%. The financial firm anticipates Utz will continue to capture increased market share within the U.S. salty snacks sector. This growth is expected to come from strong performance in its core markets as well as successful distribution expansion.
However, UBS analysts express concerns about the broader trends within the salty snacks category, indicating that improvements are unlikely in the near term due to prevailing consumer conditions in the United States. Although Utz is predicted to benefit from enhanced productivity and a favorable cost environment, the analysts foresee the company's shares remaining stable unless there is a significant boost in top-line growth visibility.
