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Investing.com - BMO Capital has lowered its price target on Primo Brands Corp. (NYSE:PRMB) to $39.00 from $42.00 while maintaining an Outperform rating on the stock. Primo currently trades at $17.70, near its 52-week low of $17.50, having fallen 45.74% over the past six months.
The firm cited the company’s in-line third-quarter results, which suggested recovery from integration issues was on track, while retail performance exceeded expectations. Despite posting 34.41% revenue growth in the last twelve months, guidance indicating fourth-quarter deceleration has increased uncertainty around the company’s near-term performance.
BMO Capital noted that the abrupt CEO change at Primo Brands has further contributed to a sense of near-term instability for the company, leading to the price target reduction and lowered estimates.
Despite these challenges, the research firm continues to view the current difficulties as temporary and believes the stock is disconnected from its fundamental value.
BMO Capital expects Primo Brands to realign with its algorithm in 2026 and anticipates investor focus will eventually return to the company’s strong competitive positioning and attractive growth opportunities. Though currently unprofitable, analysts predict Primo will be profitable this year, and the company has maintained a consistent record of raising its dividend for three consecutive years, currently offering a 2.26% yield.
In other recent news, Primo Water Corp reported its Q3 2025 earnings, revealing a significant earnings per share (EPS) beat. The company posted an actual EPS of $0.41, surpassing the forecasted $0.35, resulting in a 17.14% surprise. Revenue for the quarter amounted to $1.766 billion, greatly exceeding the expected $614.3 million. However, this figure represents a 1.6% decline compared to the same period last year. Despite the positive earnings results, the company’s stock experienced a notable decline. In other developments, analysts have not provided any new upgrades or downgrades for Primo Water Corp in the recent updates. The company’s financial performance remains a focal point for investors, particularly given the contrast between earnings beats and stock movement. These recent developments continue to shape investor perspectives on Primo Water Corp .
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