Primo Brands initiated with an Outperform at BMO Capital

BMO Capital initiated coverage of Primo Brands (PRMB) with an Outperform rating and $40 price target which implies nearly 30% upside. The firm believes Primo is an “attractive opportunity at a compelling entry point.’ The company is poised to realize strong adjusted EBITDA growth driven by above average sales growth and solid margin expansion, the analyst tells investors in a research note. BMO says the stock’s multiple “should migrate higher” to better reflect its more branded beverage portfolio.