Needham starts Utz Brands at Buy, adds to 2024 Conviction List

Needham initiated coverage of Utz Brands (UTZ) with a Buy rating and $20 price target. The firm has also named the stock to its Conviction List for 2024, removing BellRing Brands (BRBR). Utz has the right playbook and a new management team in place to transition from a family-run regional company to a national competitor in the salty snack category, and the company’s sales growth rate could outpace the category for years, the analyst tells investors in a research note. Needham adds that it sees the company with steady cash flow improvement, long-term double-digit EBITDA growth, and margin gains as its national sales build.