Investing.com– BMO initiated safety of Primo Producers (NYSE:) with an Outperform rating and a sturdy price aim, calling the stock a beautiful select on its large market share of water producers inside the U.S.
BMO rated the stock at Outperform with a $40 price aim, representing a just about 30% upside from Primo’s Friday shut of $31.07.
The brokerage talked about Primo’s current price represented “a beautiful various at a compelling entry stage,” and expects the company to clock sturdy adjusted EBITDA progress on sturdy product sales and healthful margins.
BMO expects the company to see revenue progress of at least mid-single digits on help from its mannequin names. This opens a pathway for adjusted EBITDA margins to realize mid-20% inside the coming years, the brokerage talked about.
Primo was long-established ultimate yr by the merger of Primo Water and BlueTriton Producers, and owns various important packaged consuming water producers, along with Poland Spring, Pure Life, Mountain Valley and Saratoga.
BlueTriton was a North American subsidiary of European shopper massive Nestle SA (SIX:), and had supplied its bottling operations to personal equity in 2021.
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