TD urges long-term view on Primo Brands after Nielsen data

TD Securities analyst Derek Lessard says Primo Brands (PRMB) shares are trading lower May point-of-sales data from Nielsen showed the company’s retail water sales last month were about flat, hurt by unfavorable weather conditions. The Hawkins tornado impacted Ozarka’s plant in Texas, while unusually cool weather in the Northeast was not conducive to bottled water consumption and pressured the sales of Poland Spring, the analyst tells investors in a research note. However, TD believes the Nielsen update does not reflect the underlying strength of Primo’s business. The firm urges investors to take a longer term view on the stock. The company’s categories less subject to weather, like five-gallon retail, are still seeing strong trends, TD says. The firm has a Buy rating on the shares with a $48 price target The stock in afternoon trading is down 2% to $29.07.