Goldman Sachs Reiterates Neutral Rating on Primo Brands Corp. (PRMB)

Goldman Sachs analyst Bonnie Herzog reiterated a Neutral rating and $18.00 price target on Primo Brands Corp. (NYSE: PRMB).

The analyst comments "Our View -- PRMB reported a Q4 EPS beat of $0.26 (vs. GS/FactSet consensus $0.21/$0.20). Q4 comparable net sales decline of -2.5% was better than incoming expectations (vs. GS/FactSet consensus -4.4%/-5.4%) as a result of lower than expected declines within its direct delivery business, albeit partly oset by weaker than expected retail segment growth. Stronger than expected sales owed through to gross margins of 30.4%, which were above our expectations but fell slightly short of consensus expectations. Furthermore, with SG&A spend -1% YoY, adj. EBITDA of $334mn (vs. GS/consensus $315mn/$329mn) beat incoming expectations and owed through to an EPS beat in the quarter. Mgmt also provided an update on its integration process, with 5 of 7 rounds of integration already completed and the remaining rounds (focused on branch consolidation and ERP harmonization) on track to be completed in 1H26 which is positive. Looking forward, mgmt provided its initial FY26 guidance, which was below its l.t. algo of +3-5% growth and largely in line with our expectations. Indeed, mgmt expects FY26 organic sales growth of at to +1% (vs. GS/consensus +0.7%/+0.8%), with FY26 adj. EBITDA of $1,485-1,515mn (vs. GS/consensus $1,507mn/$1,509mn). All-in, we expect the stock to trade higher on the back of stronger than expected Q4 results (esp. driven by better than expected direct delivery sales)."

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 $19.63 yesterday.

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