Morgan Stanley Cuts Primo Brands (NYSE:PRMB) Price Target to $35.00

Key Points

• Morgan Stanley has reduced the price target for Primo Brands (NYSE:PRMB) from $38.00 to $35.00, while maintaining an "overweight" rating, indicating a potential upside of 47.80% from its current price.
• Other analysts, like Bank of America and Barclays, have also lowered their price targets, with Bank of America setting a new target of $39.00, while Deutsche Bank and Royal Bank of Canada set targets at $26.00 and $37.00 respectively.
• Primo Brands reported an earnings miss for the last quarter, with earnings per share at $0.36, compared to a consensus estimate of $0.41, alongside a revenue of $1.73 billion, below analyst forecasts of $1.83 billion.

Primo Brands (NYSE:PRMB - Get Free Report) had its target price lowered by equities researchers at Morgan Stanley from $38.00 to $35.00 in a research report issued on Monday,Benzinga reports. The brokerage presently has an "overweight" rating on the stock. Morgan Stanley's price target suggests a potential upside of 42.39% from the stock's previous close.

Several other equities research analysts have also recently commented on PRMB. Barclays dropped their price target on shares of Primo Brands from $40.00 to $38.00 and set an "overweight" rating on the stock in a research report on Monday, June 16th. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and issued a $26.00 price target on shares of Primo Brands in a research note on Friday, August 8th. Royal Bank Of Canada dropped their price target on Primo Brands from $40.00 to $37.00 and set an "outperform" rating on the stock in a research note on Friday, August 8th. Mizuho initiated coverage on Primo Brands in a research note on Monday, May 12th. They issued an "outperform" rating and a $43.00 price target on the stock. Finally, TD Securities dropped their price target on Primo Brands from $48.00 to $35.00 and set a "buy" rating on the stock in a research note on Friday, August 8th. One investment analyst has rated the stock with a hold rating and nine have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $37.60.

Primo Brands Price Performance

Primo Brands stock traded up $0.17 during midday trading on Monday, hitting $24.58. The company's stock had a trading volume of 6,822,446 shares, compared to its average volume of 5,299,515. The company has a quick ratio of 0.88, a current ratio of 1.06 and a debt-to-equity ratio of 1.55. The stock's 50-day moving average price is $28.65 and its 200-day moving average price is $31.43. Primo Brands has a 12 month low of $21.54 and a 12 month high of $35.85. The company has a market capitalization of $9.18 billion, a PE ratio of -223.45, a price-to-earnings-growth ratio of 0.57 and a beta of 0.72.

Primo Brands (NYSE:PRMB - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The company reported $0.36 EPS for the quarter, missing the consensus estimate of $0.41 by ($0.05). Primo Brands had a positive return on equity of 9.64% and a negative net margin of 1.20%. The business had revenue of $1.73 billion during the quarter, compared to the consensus estimate of $1.83 billion. The company's revenue was up 31.6% compared to the same quarter last year. Analysts anticipate that Primo Brands will post 1.13 earnings per share for the current fiscal year.

Insider Activity

In other Primo Brands news, CEO Robbert Rietbroek bought 8,285 shares of the stock in a transaction on Wednesday, August 13th. The shares were bought at an average price of $24.12 per share, with a total value of $199,834.20. Following the purchase, the chief executive officer directly owned 586,349 shares in the company, valued at $14,142,737.88. The trade was a 1.43% increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Steven P. Stanbrook purchased 12,400 shares of Primo Brands stock in a transaction dated Tuesday, August 12th. The shares were purchased at an average price of $24.04 per share, with a total value of $298,096.00. Following the completion of the acquisition, the director owned 125,025 shares in the company, valued at $3,005,601. The trade was a 11.01% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders own 58.40% of the company's stock.

Institutional Investors Weigh In On Primo Brands

Several institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. lifted its holdings in shares of Primo Brands by 28.7% during the 1st quarter. Vanguard Group Inc. now owns 19,704,538 shares of the company's stock valued at $699,314,000 after buying an additional 4,389,327 shares during the last quarter. Boston Partners lifted its holdings in Primo Brands by 13.7% in the 2nd quarter. Boston Partners now owns 8,089,479 shares of the company's stock worth $239,551,000 after purchasing an additional 971,939 shares during the last quarter. Eminence Capital LP lifted its holdings in Primo Brands by 48.3% in the 1st quarter. Eminence Capital LP now owns 7,019,075 shares of the company's stock worth $249,107,000 after purchasing an additional 2,284,912 shares during the last quarter. Alliancebernstein L.P. lifted its holdings in Primo Brands by 2,486.6% in the 2nd quarter. Alliancebernstein L.P. now owns 5,867,110 shares of the company's stock worth $173,784,000 after purchasing an additional 5,640,287 shares during the last quarter. Finally, Third Point LLC lifted its holdings in Primo Brands by 108.1% in the 2nd quarter. Third Point LLC now owns 5,775,000 shares of the company's stock worth $171,056,000 after purchasing an additional 3,000,000 shares during the last quarter. 87.71% of the stock is currently owned by institutional investors and hedge funds.

Primo Brands Company Profile

Primo Brands Corp. is a branded beverage company, which focuses on healthy hydration. It delivers sustainably and domestically sourced diversified offerings across products, formats, channels, price points and consumer occasions, distributed in the United States and Canada. The company provides water filtration units for home and business consumers across North America.