Credit Suisse downgrades UTZ Brands to 'neutral'

Utz Brands

12/04/2022 11:22

** Shares of U.S. manufacturer of branded salty snacks
 UTZ.N  down
    ** Credit Suisse downgrades UTZ to "neutral" from
"outperform", says "not enough pricing power for next wave of
inflation"
    ** CS says over past twelve months, UTZ has yet to develop
sufficient pricing power with customers or productivity programs
to cushion itself from hyperinflationary environment
    ** "Management is in the process of executing new pricing to
offset commodities costs, but these actions are likely to lag
the industry leader, Frito Lay" - CS
    ** Brokerage still sees UTZ as relatively well-positioned
company in the attractive salty snacks category with significant
opportunities for margin expansion
    ** CS cuts PT to $16.50 from $20; also trims 2022 EPS
estimates to $0.53 from $0.57 
    ** Of 10 brokerages covering stock, 5 rate "buy" or higher
and 5 "hold"; median PT is $18 - Refinitiv
    ** Stock down 9.09% this year, as of last close

 (Reporting By Geetha Panchaksharam)
 ((geetha.panchaksharam@thomsonreuters.com))