BUZZ-Primo Brands up after BMO initiates coverage, RBC raises PT
Primo Brandsshares rose 2% to $31.70 after BMO Capital Markets initiated coverage with an "outperform" rating and a price target (PT) of $40, indicating a 28.7% premium. BMO highlighted strong adjusted EBITDA growth potential due to above-average sales and margin expansion. RBC also raised its PT from $35 to $38, noting growth in Primo's premium brands, Mountain Valley and Saratoga, in a lucrative market segment. The merger with BlueTriton in June created PRMB, which includes well-known water brands.
Beverage company Primo Brands’ (PRMB.N) shares rise 2% at $31.70
Brokerage BMO Capital Markets initiates coverage on stock with “outperform” rating and PT of $40, a 28.7% premium to last close
Brokerage says PRMB is poised to realize strong adjusted EBITDA growth driven by above average sales growth and solid margin expansion
Primo Water and BlueTriton announced merger in June, creating PRMB, which houses water brands such as Poland Spring, Pure Life and Deer Park, as well as premium brands Mountain Valley and Saratoga
“It may take some time for PRMB’s multiple to more closely reflect its increasingly branded beverage mix as investors gain comfort with the outlook for combined Primo/BlueTriton business” — BMO analyst Andrew Strelzik
Brokerage RBC raises PT to $38 from $35, says “beyond traditional mass market bottled water, we see strong potential for Primo’s premium Mountain Valley and Saratoga brands, which are growing at a rapid pace in an attractive segment of the market”
