Utz Brands' (UTZ) quarter-to-date trends appear soft but underlying growth remains solid, driven by distribution gains, innovation, and California expansion momentum, RBC Capital Markets said in a note Thursday.

Management is optimistic that the company's new products will support topline growth and that the company is well-covered for most of the year on fuel, agricultural commodities, and freight, easing inflationary concerns, according to the note.

Full-year guidance for the salty snacks category still assumes an approximately flat growth, which analysts said is appropriate given the noisy Q1 and consumer environment.

Following the roughly in-line Q1 results and reaffirmed guidance, the brokerage said it is adjusting its 2026 estimates to reflect organic sales growth of 2.5%, EBITDA growth of 6%, and an EPS decline of 4.1%.

RBC Capital Markets maintained its outperform rating on the stock, with a price target of $15.

Shares of Utz Brands were down 5% in Thursday trading.

Price: 7.88, Change: -0.42, Percent Change: -5.06