Primo Brands Corporation (PRMB) Rated ‘Neutral’ at Goldman Sachs on 4% Organic Growth Prospects

Primo Brands Corporation (NYSE:PRMB) is one of the best FMCG stocks to invest in. On September 11, Goldman Sachs initiated coverage of the stock with a ‘Neutral’ rating and a $25 price target. The investment bank is confident about the company’s prospects as a leading beverage company, given its presence in the bottled water market.

Consequently, Goldman Sachs expects the company to deliver a 4% organic compound annual growth rate in sales through 2028, driven by brands such as Poland Springs and Pure Life. It also expects the beverage giant to post an 8% EBITDA CAGR growth through 2028, driven by $300 million in cost synergies.

The bank expects Primo Brands to also benefit from its expansion into fast-growing categories, such as sparkling water and functional hydration products. It also expects the company to generate $1 billion in free cash flow by 2027, which should help lower debt levels.

Primo Brands Corporation (NYSE:PRMB) is a North American company that produces and delivers healthy hydration products, including spring, purified, and enhanced waters, under various well-known brands like Poland Spring, Pure Life, and Primo. They are the largest reuse and refill beverage platform in the U.S.

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Disclosure: None. This article is originally published at Insider Monkey.