Core Insights - Primo Brands Corporation (NYSE:PRMB) is identified as a promising stock with potential upside, despite a recent price target reduction by Barclays analyst Lauren Lieberman from $25 to $24 while maintaining an Overweight rating [1] Financial Performance - In Q3 2025, Primo Brands reported net sales of $1.766 billion, reflecting a 1.6% year-over-year decline, but achieved a Comparable Adjusted EBITDA of $404.5 million, which is a 6.8% year-over-year increase, resulting in a solid margin of 22.9% [2] - The decline in overall net sales was primarily due to the Direct Delivery business, which experienced a 6.5% comparable net sales decline, approximately $47 million, attributed to integration challenges and increased costs [3] Business Operations - Primo Brands operates as a branded beverage company in North America, providing solutions through water dispensers, direct delivery of refillable/reusable bottles, a pre-filled water exchange program, and water filtration appliances, along with self-service water refill stations [4]

Group 1 - Primo Brands Corporation (NYSE:PRMB) is currently considered one of the most undervalued stocks on the NYSE, with RBC Capital lowering its price target from $37 to $30 while maintaining an Outperform rating [1][3] - The company's Q3 2025 earnings report revealed net sales of $1.766 billion, reflecting a modest year-over-year decline of 1.6%, but a 6.8% increase in Comparable Adjusted EBITDA to $404.5 million, resulting in a margin expansion to 22.9% [2] - Unit Case Volume Growth for the company increased by 0.7% despite the overall drop in sales [2] Group 2 - The direct delivery segment was the primary drag on performance, experiencing a 6.5% decline in comparable net sales, which equated to a loss of $47 million, attributed to integration challenges post-merger [4] - Increased costs from the direct delivery business included additional routes and customer service expenses, along with $3.7 million in increased credits to customers year-over-year [4] - The company has stabilized its operations, successfully improving its delivery service rate back to approximately 95%, consistent with historical levels [4] Group 3 - Primo Brands operates as a branded beverage company in North America, providing solutions through various water-related services and products, including water dispensers and self-service refill stations [5]