TD Cowen analyst Derek Lessard maintained a Buy rating on Primo Brands today and set a price target of $27.00.
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Derek Lessard has given his Buy rating due to a combination of factors that suggest a promising outlook for Primo Brands. The recent appointment of CEO Eric Foss has been pivotal, as his actions are perceived to have stabilized the company’s share price by addressing previous guidance issues. The company’s operational metrics, such as ‘on-time’ service levels and ‘in-full’ delivery rates, are showing signs of improvement, indicating a recovery in performance.
Furthermore, despite a reduction in revenue and EBITDA estimates, the stock’s current valuation presents a favorable risk-reward scenario, trading at a lower multiple compared to its historical peak. Although the price target has been adjusted to reflect a more conservative recovery timeline, the underlying demand for Primo Brands’ products remains strong. The company is overcoming its integration challenges, and with consumer demand for bottled water on the rise, the stock is positioned to attract investors seeking opportunities in a recovering market.