Primo Water Corp
PRMW: XTSE (CAN)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
CAD 52.90 | Qjsc | Qffhjvg |
Strong Third-Quarter Results at Primo Water Showcase Strong Demand and Improving Service Levels
Similar to the shares’ trading reaction after quarterly results were announced, our $16 (CAD 20.50) per share valuation of no-moat Primo Water should rise by a mid-single-digit percentage, reflecting third-quarter earnings that have the firm trending above our full-year targets. Our long-term estimates remain intact (mid-single-digit percentage annual revenue growth, roughly 20% adjusted EBITDA margins). We see the shares as somewhat attractive, as prevailing sentiment appears to be overly focused on near-term economic turbulence.