Why are Hedge Funds Keen on Utz Brands (UTZ)

Core Viewpoint - Utz Brands (NYSE:UTZ) is identified as a promising mid-cap consumer staples stock, with a current Buy rating from Bank of America Securities despite a target price reduction from $15 to $14, indicating a potential upside of nearly 41% [1]. Financial Performance - The company's preliminary Q4 results revealed organic sales growth between 0.3% and 0.6%, which fell short of analyst expectations of 2.7% and consensus forecasts of 2.9%, attributed to macroeconomic headwinds affecting consumption [2]. - Organic sales growth forecasts have been revised down from 3% to approximately 2.5%, while adjusted EBITDA is estimated to be around $217 million [3]. Analyst Ratings and Outlook - Mizuho Securities analyst John Baumgartner reaffirmed a Buy rating with a target price of $16, suggesting a potential upside of 61%, following positive management meetings [4]. - Baumgartner expressed confidence in the company's ability to achieve volumetric growth and margin expansion in 2026, which is expected to enhance free cash flows and support financial deleveraging efforts [5]. Company Overview - Utz Brands specializes in selling snack foods to consumers, warehouse clubs, and merchandisers, with a diverse product range including pretzels, potato chips, tortillas, and ready-to-eat popcorn, marketed under various brands such as Utz, Golden Flake, and TGI Fridays [6].