Opinions
Jim Cramer - Mad Money
Utz Brands
UTZ-N
BUY
Oct 23, 2020
Likes it. They make snacks. It recently went public. In coming years they will do acquisitions and go national. This will do really well in coming years.
$17.680
Stock price when the opinion was issued
food processing
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BUY
This is the year of the SPAC, many of which are too opaque for him to understand and feel confident about. Utz's SPAC is an exception. Last summer, a SPAC bought UTZ and rolled up the snack-food business. Since summer, they've made some more acquisitions including $480 million for a tortilla-chip company. Just reported a top and bottom-line beat with a strong full-year forecast.
food processing
COMMENT
They merged with a SPAC last year and have since made acquisitions. The stock has doubled since last summer. Last night, they delivered solid, but disappointing numbers and shares tumbled 4%. Today, the stock rebounded. UTZ beat earnings expectations and they have a promising national expansion plan.
food processing
TOP PICK
Collier Creek Holdings went SPAC in late-August 2020 to become Utz, a maker of snacks under such brands as, Zapp's, Golden Flake and Good Health. This Pennsylvania company has been around for nearly a century, but went public at the right time—in the middle of the pandemic. People stay at home and eat snacks. For example, Q3 year-over-year sales jumped 24%. Last December, Utz bought Truco Enterprises, which churns out tortilla chips and salsa for $480 million. A good fit that will help transform Utz from a regional player into a national one. The news bumped shares from $19 to $22.50. Utz has been climbing ever since, though tumbled 4% after announcing slightly disappointing guidance on March 18 though it crushed Q4 earnings estimates. Since then, Utz shares have been choppy, but rising steadily in the past week. Utz pays a modest dividend of 0.96%, but six analysts signal a buy and two a hold, and they target $27.13, or 8.52% upside. Despite a reopening American economy, Utz remains poised to sell snacks and meet its projections.
food processing
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