UTZ
Utz Brands (NYSE: UTZ) soared 90% after agreeing to be taken private in a $2.
Article Summary
HOLD- Utz Brands (NYSE: UTZ) soared 90% after agreeing to be taken private in a $2.9 billion deal with Intersnack Group, with Utz Brands acquiring all publicly traded Class A shares for $14.25 per share, representing a premium of about 91% to Utz's July 20 closing price.
- The deal, which includes the founding Rice and Lissette families holding 50% of Utz, is expected to close in the fourth quarter, strengthening the company's position in the U.S. snack market and adding a century-old snack business that generated $1.44 billion in revenue last year with analysts expecting sales to increase by 4% this year.
- Analyst Andrew Lazar noted that the agreement followed several years of valuation compression, while Barclays said the transaction was not entirely unexpected as Utz management and board had consistently appeared open to strategic alternatives since the company entered public markets through a SPAC transaction in 2020.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 2.3% | 25% | 20.0 ptsMinimal (2.3%) - Very weak |
| EPS Growth Next 5Y ? | 3.8% | 25% | 10.0 ptsVery Weak (3.8%) - Minimal expectations |
| Target Price Upside ? | 5.2% | 20% | 10.0 ptsNear/At Target (5.2%) - Target: $13.36 vs Current: $14.10 |
| Gross Margin % ? | 27.5% | 15% | 40.0 ptsModerate (27.5%) - Adequate margins |
| Drawdown from 52-Wk High ? | -3.9% | 15% | 20.0 ptsBarely a Dip (-3.9%) - Near recent highs |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About UTZ
- Utz Brands, Inc. manufactures branded salty snacks in the United States.
- The company provides a range of salty snack food products, such as potato chips, tortilla chips, pretzels, cheese snacks, pub and party mixes, pork skins, and ready-to-eat popcorn, as well as other snacks which include salsa and dips; and non-branded and non-salty snacks comprising partner brands, private label, and co-manufacturing products.
- It offers its products under the Utz, On The Border, Zapp's, Boulder Canyon, Golden Flake, Miguelito's, Hawaiian, Bachman, Tim's Cascade, Dirty Potato Chips, TGI Fridays, and Vitner's brand names.
- The company distributes its products through direct-to-warehouse, direct-store-delivery, third-party distributors, and direct-to-consumer.
- Utz Brands, Inc. was founded in 1921 and is headquartered in Hanover, Pennsylvania.