Primo Brands: Buy Rating Reaffirmed on Strengthening Direct Delivery, Resilient Retail Momentum and Unchanged $29 Price Target

Derek Lessard, an analyst from TD Cowen, maintained the Buy rating on Primo Brands. The associated price target remains the same with $29.00.

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Derek Lessard has given his Buy rating due to a combination of factors, including stronger direct delivery execution and resilient retail momentum that underpin confidence in Primo Brands’ free cash flow outlook. The company’s improved on-time, in-full performance, better customer trends, and declining service issues suggest that its direct delivery business is stabilizing faster than previously anticipated, supporting a return to growth and sustaining mid-single-digit revenue expansion over the medium term.

At the same time, broad-based retail strength, driven by premium product growth, solid at-home water consumption, and traction in regional spring water brands, provides a diversified and durable demand base. Management’s proactive actions to offset oil-related cost inflation, coupled with guidance that still points to modest margin expansion and a clear path toward roughly $1 billion in annual free cash flow by 2027, support Lessard’s unchanged $29 price target and reinforce his positive view on the stock’s risk-reward profile.

In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $24.00 price target.