Primo Brands Faces Prolonged Sales Declines and Service Disruptions, Leading to Hold Rating

Bonnie Herzog, an analyst from Goldman Sachs, maintained the Hold rating on Primo Brands. The associated price target was lowered to $18.00.

Bonnie Herzog has given her Hold rating due to a combination of factors impacting Primo Brands. The company is facing several headwinds, including faster and more prolonged sales declines than anticipated, particularly in their direct delivery business. This segment, which accounts for a significant portion of their sales, has been experiencing service disruptions, leading to concerns about the company’s ability to recover quickly.
Additionally, the company’s management has provided guidance indicating further sales declines, which suggests that these challenges may persist into the next fiscal year. The lack of visibility into the recovery timeline and the potential for continued pressure on the direct delivery business contribute to the cautious outlook. Despite these challenges, there is potential for slight growth if the company successfully recaptures lost customers and achieves price growth, but the overall uncertainty keeps the stock in a Hold position.

In another report released on November 11, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $14.50 price target.

Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of PRMB in relation to earlier this year.