BMO Capital analyst Andrew Strelzik has maintained their bullish stance on PRMB stock, giving a Buy rating on February 20.
Andrew Strelzik’s rating is based on a combination of factors that suggest a positive outlook for Primo Brands. He notes that the company’s strong fundamentals are evidenced by their recent performance, including a 5.5% sales growth that was primarily driven by volume. The company exceeded revenue estimates and demonstrated robust growth across all water categories, which is a positive indicator of its market position.
Additionally, Strelzik highlights the potential for further growth due to increased synergy targets and conservative revenue guidance. The company raised its cost synergy expectations significantly, which provides a clearer path towards achieving its 2025 EBITDA goals. With these synergies and a strategic focus on premium brand distribution, Primo Brands is positioned for above-average top-line growth and improved margins. The stock is considered undervalued at its current multiple, suggesting potential for price appreciation in line with the company’s evolving portfolio.
Strelzik covers the Consumer Cyclical sector, focusing on stocks such as Brinker International, Darden Restaurants, and McDonald’s. According to TipRanks, Strelzik has an average return of 5.9% and a 57.10% success rate on recommended stocks.