© Reuters. Utz Manufacturers (UTZ) shares rally as investor day prompts optimistic response from analysts
Utz Manufacturers (UTZ) shares rallied Monday, climbing greater than 6% after the corporate held its investor day final week, prompting a optimistic response from analysts.
RBC Capital, which has an Outperform ranking on the inventory, upped its value goal for UTZ to $19 from $17 per share in a notice, stating that the investor day exceeded their bullish expectations.
“UTZ revealed a comprehensive plan for its next phase of growth at last week’s Investor Day and provided 3-year financial targets that imply upside to RBCe/cons,” wrote analysts at RBC Capital. “Going forward, their strategy will revolve around penetrating expansion geographies, transforming the supply chain, developing enhanced organizational capabilities, and improving the balance sheet.”
Close to-term headwinds apart, analysts at RBC Capital are more and more assured that UTZ administration is taking the proper steps to “further transform the company into a best-in-class snacking pure-play that can better compete with market leaders.”
Piper Sandler additionally lifted its value goal for UTZ, this time to $18 from $17 per share. Analysts on the agency mentioned the three-year targets the corporate unveiled “look attractive and achievable.”
“We expect good category momentum (just 2-3% is assumed for its targets vs. 4-5% historically) and share gains in expansion geographies to drive strong top-line growth,” mentioned analysts at Piper Sandler.
In response to the agency, UTZ plans a better give attention to advertising and marketing spending and client insights behind its energy manufacturers, fueled by accelerating productiveness financial savings.
“We expect automation, facility consolidation, and new mixing centers to drive productivity (three-year target: ~$135M),” they added. “We maintain our current estimates but believe there is likely upside to these (and to its targets) on a three-year view.”
