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Investing.com - BofA Securities has lowered its price target on Primo Brands Corp. (NYSE:PRMB) to $39.00 from $42.00 while maintaining a Buy rating on the bottled water company’s stock. Currently trading at $30.53, the stock sits below the analyst consensus range of $38-48, with InvestingPro data indicating the stock is undervalued.
The price target adjustment comes as BofA Securities continues its bi-weekly summer weather tracking for Primo Brands, using forecasts from the National Oceanic & Atmospheric Administration (NOAA).
BofA Securities notes that tracking weather patterns is crucial for understanding Primo Brands’ share price performance and potential estimate adjustments, as bottled water consumption is heavily influenced by temperature and precipitation factors.
Weather monitoring is particularly significant during the summer months, as the second and third quarters collectively represent approximately 53% of Primo Brands’ annual sales volume.
Despite the reduced price target, BofA Securities has maintained its Buy rating on Primo Brands stock, suggesting continued confidence in the company’s overall performance despite weather-related considerations. InvestingPro analysis shows a "GOOD" overall financial health score, with additional insights available in the comprehensive Pro Research Report covering this and 1,400+ other top US stocks.
In other recent news, Primo Brands Corp. has been the focus of several analyst firms, each offering insights into the company’s future prospects. Morgan Stanley (NYSE:MS) initiated coverage with an Overweight rating, highlighting a price target of $38.00 due to the company’s potential for profit growth and merger synergies. Barclays (LON:BARC) also rated Primo Brands as Overweight, setting a $40.00 price target, and noted the company’s resilience in the food and beverage sector. Meanwhile, BofA Securities gave Primo Brands a Buy rating with a $42.00 price target, citing the company’s strong market position and potential for value growth. Mizuho (NYSE:MFG) also joined the coverage with an Outperform rating and a $43.00 price target, emphasizing the company’s ability to capitalize on the trend toward healthier beverages.
Additionally, Primo Brands announced that two stockholders, affiliated with One Rock Capital Partners (WA:CPAP), are selling 47.5 million shares of Class A common stock. The proceeds will go entirely to the selling stockholders, and Primo Brands itself will not sell any shares. The company has also agreed to repurchase $100 million worth of its Class A common stock from these stockholders in a private transaction. This share repurchase is contingent on the completion of the secondary offering. These developments reflect ongoing strategic moves by Primo Brands and its stakeholders, aiming to strengthen the company’s market position and financial performance.
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