Primo Water Corp
PRMW: XTSE (CAN)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
CAD 18.60 | Mggkh | Scxrlsrbr |
Primo Water Posts a Strong Second Quarter Despite Economic Turbulence
Our $16 (CAD 20.50) per share valuation of Primo Water should rise by a mid-single-digit percentage (similar to the trading price’s reaction) after it posted strong second-quarter earnings. The firm appears to be on pace to meet our long-term expectations (mid-single-digit percentage annual revenue growth, roughly 20% adjusted EBITDA margins). At current levels, the shares seem attractive, with market sentiment seemingly overly focused on the impact of near-term economic turbulence.