Primo Brands: Accelerating Direct-Delivery Recovery and Solid Retail Demand Create Attractive Discounted Entry Point

TD Cowen analyst Derek Lessard maintained a Buy rating on Primo Brands yesterday and set a price target of $29.00.

Derek Lessard has given his Buy rating due to a combination of factors, including clear evidence that Primo Brands’ direct‑delivery business is recovering faster than expected and should return to modest revenue growth in the second half of 2026. Operational indicators such as improved on‑time, in‑full performance, fewer customer complaints, and targeted initiatives to enhance retention and service quality support the view that this formerly pressured segment has moved past the worst phase and is on a constructive trajectory.

In addition, retail demand remains solid, underpinned by strong scanner data, growing consumer preference for premium water brands, and successful execution in adding new customers and distribution. Lessard also believes the company is gradually reverting to its long‑term mid‑single‑digit growth profile, aided by industry tailwinds and a normalized delivery business, while the stock trades at a notable discount to beverage peers on an EBITDA basis, creating what he sees as an attractive risk‑reward entry point.

In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $21.00 price target.