Utz Brands (NYSE: UTZ) — DA Davidson: Neutral → Buy | Target: $16
🧠 DA Davidson has upgraded Utz Brands from Neutral to Buy, keeping a $16 price target. This move reflects confidence in the company’s strategic progress in the salty snacks sector, particularly with ongoing supply chain improvements and strong market share momentum despite wider industry headwinds.
📈 Analyst Brian Holland noted reduced promotional pressure and gains in non-tracked retail channels as key factors supporting Utz’s growth. These tailwinds enhance the risk-reward profile and point to potential earnings upside if recent gains persist.
🌍 Utz’s targeted expansion into high-opportunity markets—areas that make up over 60% of salty snack sales—has been successful, driven by amplified marketing efforts and continuous product innovation. This focus has paid off in consistent market share gains, even with overall category sales facing inflation-related volume declines.
📦 One of the biggest highlights in the upgrade is Utz’s execution in transforming its supply chain. The efficiency gains are substantial enough that further upward revisions in estimates are likely if current trends hold.
🛒 What’s more, the company’s performance outside of tracked retail channels suggests underlying strength that traditional metrics may underestimate. This gives investors a broader base of confidence in Utz’s trajectory.
💰 Dividend Fundamentals
💵 As of April 24, 2025, Utz Brands offers a forward dividend yield of 2.07%, translating to an annual payout of $0.28 per share. The company has grown its dividend for five consecutive years, which adds a layer of income appeal for yield-focused investors.
⚠️ However, with a payout ratio of 148.95%, the dividend currently exceeds earnings, signaling that future dividend sustainability will rely heavily on ongoing profit growth. While the income is attractive, long-term holders should keep an eye on earnings to gauge the dividend’s staying power.
In short, DA Davidson’s bullish stance on Utz is rooted in real strategic gains—especially around operations and category leadership. Combined with a steady dividend, the setup looks favorable for both growth and income-minded investors.