Mizuho Starts Primo Brands Corp. (PRMB) at Outperform

Mizuho analyst John Baumgartner initiates coverage on Primo Brands Corp. (NYSE: PRMB) with a Outperform rating and a price target of $43.00.

The analyst comments: "A leading U.S. branded beverage company, following the November 2024 merger with BlueTriton (formerly Nestlé Waters America), Primo's pure-play water portfolio is poised to benefit from the structural growth of 'healthy hydration'. The shift from sweetened beverages has been underway for 30+ years, and we believe flavor innovation, focus on unhealthy ingredients, and concerns for tap water quality will maintain growth for bottled water. PRMB is strongly positioned to benefit from macro tailwinds via high diversification spanning sales channels, price points, and package sizes. Assets include 90 spring source locations, service to over 200,000 retail outlets, and direct-to-consumer operations serving 3 million customers. Our $43 PT is based on ~13x our CY25E EBITDA; in-line vs. U.S. Food and Beverages peers. We believe upside exists vs. consensus through FY26E from synergy phasing and underlying operating leverage."

For an analyst ratings summary and ratings history on Primo Brands Corp. click here. For more ratings news on Primo Brands Corp. click here.

Shares of Primo Brands Corp. closed at $31.94 yesterday.

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