Primo Brands, the Consumer Defensive sector company, was revisited by a Wall Street analyst yesterday. Analyst Eric Serotta from Morgan Stanley maintained a Buy rating on the stock and has a $38.00 price target.
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Eric Serotta has given his Buy rating due to a combination of factors that suggest a promising long-term investment opportunity despite current challenges. Primo Brands is currently trading at a discount compared to its US-focused peers, offering an attractive valuation at 9x 2026 estimated EV/EBITDA. This presents a favorable risk-reward scenario with a 2.8:1 bull/bear case skew.
While there are short-term headwinds such as weak second-quarter scanner data and disruptions in direct delivery integration, these are seen as already priced into the stock. The expectation is that growth will pick up in the third quarter with more favorable retail sales comparisons and improved service levels. Additionally, the company is on track to achieve $300 million in merger synergies by the end of next year, and it is well positioned to handle increased trade tensions with minimal impact from tariffs.
In another report released on July 15, Barclays also maintained a Buy rating on the stock with a $38.00 price target.
Based on the recent corporate insider activity of 50 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PRMB in relation to earlier this year.