Soft Retail Volumes Prompt Mizuho to Trim Primo Brands (PRMB) Target

Core Insights - Primo Brands Corporation (NYSE:PRMB) is facing challenges as it is listed among the 11 worst-performing dividend stocks year-to-date [1] - Mizuho has reduced its price target for Primo Brands from $35 to $28 while maintaining an Outperform rating due to soft retail volumes and increased discounts observed in Nielsen scanner data [2] Financial Performance - In Q3 2025, Primo Brands reported revenue of $1.76 billion, reflecting a significant growth of 35% year-over-year, primarily driven by net sales from Primo Water post-merger and higher volumes from BlueTriton [4] - The company's gross margin decreased to 29.9% from 31.9% in the same period last year [4] Shareholder Actions - Primo Brands has authorized an increase of $50 million to its existing share repurchase program, raising the total to $300 million, with approximately 4.4 million shares repurchased for about $97.7 million [3] Operational Metrics - The delivery service rate (DSR) has rebounded to approximately 95%, aligning with historical levels [5] - The company anticipates achieving synergy targets of $200 million and $300 million run rates by 2025 and 2026, respectively [5] Company Overview - Primo Brands Corporation is a Florida-based branded beverage company with a diverse portfolio of packaged branded water and beverages [5]