Premium Brands stock rating upgraded by RBC Capital on improved outlook

Published 07/08/2025, 09:16
Premium Brands stock rating upgraded by RBC Capital on improved outlook

Investing.com - RBC Capital upgraded Premium Brands Holdings Corp . (TSX:PBH) (OTC:PRBZF) from Sector Perform to Outperform on Thursday, while raising its price target to C$108.00 from C$100.00.

The upgrade comes as RBC Capital analyst Ryland Conrad cited "a more attractive risk-reward set-up" for the food company following the firm’s assumption of coverage with Q3/24 results in November 2024.

RBC’s analysis focused on three key areas: the impact of macroeconomic uncertainty on organic volumes, visibility around U.S. sales initiatives (particularly given product launch and customer onboarding delays throughout 2024), and progress on balance sheet deleveraging.

Despite acknowledging "still lingering macro uncertainty," RBC believes visibility on U.S. sales initiatives and the deleveraging trajectory has "meaningfully improved" for Premium Brands.

The investment firm noted that Premium Brands’ forward twelve-month EV/EBITDA multiple remains largely unchanged at 10.0x, contributing to the more favorable risk-reward profile that prompted the rating upgrade.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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