Primo Brands Corporation (PRMB) Rated ‘Neutral’ at Goldman Sachs on 4% Organic Growth Prospects

Core Insights - Primo Brands Corporation (NYSE:PRMB) is recognized as a promising investment in the FMCG sector, particularly in the beverage market, with Goldman Sachs initiating coverage with a 'Neutral' rating and a $25 price target [1][2] Financial Performance and Growth Projections - Goldman Sachs anticipates a 4% organic compound annual growth rate (CAGR) in sales for Primo Brands through 2028, supported by brands like Poland Springs and Pure Life [2] - The company is expected to achieve an 8% EBITDA CAGR through 2028, driven by $300 million in cost synergies [2] - Primo Brands is projected to generate $1 billion in free cash flow by 2027, which will aid in reducing debt levels [3] Market Position and Product Offerings - Primo Brands is a North American company specializing in healthy hydration products, including spring, purified, and enhanced waters, under well-known brands such as Poland Spring, Pure Life, and Primo [4] - The company holds the position of the largest reuse and refill beverage platform in the U.S., indicating a strong market presence [4] Strategic Expansion - The company is expected to benefit from its expansion into rapidly growing categories, including sparkling water and functional hydration products [3]