Why Goldman Sachs Is Neutral On Primo Brands Corporation (PRMB)

Core Viewpoint - Primo Brands Corporation (NYSE:PRMB) is currently viewed as a stock under $20 with potential investment interest, but recent analyst reports indicate concerns about declining sales and operational challenges [1][2]. Group 1: Analyst Ratings and Price Targets - Goldman Sachs analyst Bonnie Herzog has reduced the price target for PRMB from $21 to $18 while maintaining a Neutral stance, citing expectations of a faster and more prolonged sales decline [1]. - Truist Financial analyst Bill Chappell reaffirmed a 'Buy' rating on PRMB, indicating some analysts still see value in the stock despite recent challenges [3]. - BMO Capital has also lowered its price target for PRMB from $42 to $39 while keeping an 'Outperform' rating, reflecting mixed sentiments among analysts [3]. Group 2: Business Operations and Challenges - The direct delivery business of Primo Brands, which significantly contributes to sales, is facing service disruptions, raising concerns about the company's ability to recover in the near term [2]. - There is a lack of clarity regarding the recovery timeline for the company, which adds to the cautious outlook from analysts [2]. Group 3: Company Overview - Primo Brands Corporation is a Connecticut-based branded beverage company established in 1976, focusing on providing healthy hydration options across North America [4].