Analyst Peter Galbo from Bank of America Securities reiterated a Buy rating on Primo Brands (PRMB – Research Report) and keeping the price target at $42.00.
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Peter Galbo’s rating is based on a combination of factors including recent weather patterns and their impact on Primo Brands’ sales. He notes that the company’s performance is significantly influenced by temperature and precipitation, with the summer months being crucial as they account for over half of the annual sales. Recent scanner data showed fluctuations in sales, with a notable decline attributed to unfavorable weather, but improvements are expected as the weather becomes hotter and drier, particularly in key regions served by Primo Brands.
Furthermore, forecasts from the National Oceanic & Atmospheric Administration suggest above-normal temperatures across much of the United States, which could positively impact bottled water consumption. The anticipated weather conditions, combined with the company’s strategic positioning in populous areas, support Galbo’s confidence in the stock’s potential. Therefore, he reiterates a Buy rating with a price objective of $42, reflecting optimism about the company’s ability to capitalize on favorable weather trends.
In another report released on June 16, RBC Capital also maintained a Buy rating on the stock with a $40.00 price target.
Based on the recent corporate insider activity of 49 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.