12:27 PM EDT, 03/14/2024 (MT Newswires) -- Utz Brands' ( UTZ ) plan to achieve a long-term sales algorithm of 4% to 5% exiting Q4 and into 2025 is achievable and could boost earnings and multiples, BofA Securities said in a note Thursday.

Geographic distribution expansion and growth in average items per outlet are expected to drive market share growth for Utz, despite a slowdown in volumes of the salty snack category, according to the note.

The firm said proceeds from Utz's divestment of Good Health and RW Garcia and three manufacturing facilities will lower the company's net debt and will settle its elevated leverage issue.

"With the leverage headwind beginning to recede, we envision a scenario whereby investors add Utz to their portfolios," BofA said.

The firm upgraded its rating on Utz to Buy from Neutral and raised the price target to $22 from $19.

The company shares were up 3.3% in recent trading.

Price: 18.27, Change: +0.56, Percent Change: +3.13