Primo Brands Corporation (PRMB): A Bull Case Theory

Group 1: Primo Brands Corporation - Primo Brands Corporation's share was trading at $21.86 as of October 8th, with a forward P/E of 11.85 according to Yahoo Finance [1] - The bullish thesis on Primo Brands emphasizes its undervaluation post-BlueTriton merger and potential cost synergies [5] Group 2: Veralto Corporation - Veralto Corporation, the largest pure-play water company in the U.S., has faced initial integration challenges post-merger with BlueTriton, leading to a guidance reduction [2] - Despite these challenges, the company has navigated the worst of the merger-related disruptions, positioning it as one of the most undervalued consumer staples in the market [2] - The company is currently trading at approximately 8.5x trough EBITDA, reflecting a significant discount to its intrinsic value [3] - The combination of scale, cost synergies, and improving operational execution suggests meaningful upside potential as the earnings impact of synergies becomes more visible [3] - Investors focusing beyond short-term volatility may benefit from a substantial rerating as the market recognizes the company's enhanced earnings power and durable cash flows [4] - The water company represents a compelling investment with a strong risk/reward profile, driven by the merger's long-term benefits and attractive valuation relative to its peers [4] Group 3: Hedge Fund Interest - Primo Brands Corporation is not among the 30 most popular stocks among hedge funds, with 72 hedge fund portfolios holding PRMB at the end of Q2, up from 66 in the previous quarter [6]