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Investing.com - RBC Capital has reiterated an Outperform rating and $40.00 price target on Primo Brands Corp. (NYSE:PRMB), currently trading at $26.68 with a market capitalization of $4.28 billion, ahead of the company’s second-quarter earnings report expected Thursday.
The investment firm acknowledged that Primo Brands continues to face controversy heading into its Q2 earnings announcement, with its retail business negatively impacted by inclement weather in the Northeast region.
RBC Capital noted that Primo’s delivery business has been experiencing integration hurdles, contributing to pressured results expected in the upcoming report.
Despite these challenges, RBC Capital characterized these headwinds as "transitory rather than structural," suggesting the issues are temporary in nature.
The firm indicated that investors are generally modeling for approximately flat second-quarter revenue, and expressed confidence that the stock could perform well if the company meets this expectation and management provides positive forward commentary indicating that Q2 performance is "merely a blip."
In other recent news, Primo Brands Corp. has been the focus of several analyst reports highlighting its growth potential and market position. Mizuho (NYSE:MFG) initiated coverage on Primo Brands with an Outperform rating and set a price target of $43.00, citing the company’s ability to leverage the trend towards healthy hydration. The recent merger with BlueTriton has positioned Primo as a significant player in the U.S. branded beverage market, with an emphasis on water products. Barclays (LON:BARC) also initiated coverage with an Overweight rating and a $40.00 price target, noting the merger’s role in creating a diverse portfolio and potential for sustained top-line growth of 3-5% in the coming years.
BofA Securities initiated a Buy rating on Primo Brands, setting a price target of $42.00 and highlighting the company’s leadership in the North American bottled water market. The firm anticipates cost synergies from the merger could lead to $300 million in EBITDA by 2026. Additionally, BofA Securities adjusted its price target to $39.00 due to weather-related factors but maintained a Buy rating. Morgan Stanley (NYSE:MS) also began coverage with an Overweight rating and a $38.00 price target, suggesting that recent share price weakness presents a long-term entry opportunity. These developments reflect a broad consensus among analysts on Primo Brands’ potential for growth and market resilience.
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