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RBC Capital Stays Cautious on Primo Brands (PRMB) Due to Slow Volume Recovery Concerns Post-Q3 Earnings.

Primo Brands Corporation (NYSE:PRMB) is one of the most undervalued NYSE stocks to buy right now. On November 7, RBC Capital analyst Nik Modi lowered the firm’s price target on Primo Brands to $30 from $37, while maintaining an Outperform rating on the shares. This sentiment was posted after the company released its Q3 2025 earnings results. RBC Capital acknowledged that the company overcame its delivery issues but also warned investors that a slow pace of volume recovery will hurt near-term figures and valuation.

In its earnings report for Q3 released on the same day, Primo Brands disclosed delivering mixed results marked by strong profitability and continued challenges in its direct delivery segment. Net sales for the quarter reached $1.766 billion, which was a modest 1.6% year-over-year decline. In contrast, the company’s focus on efficiency drove a 6.8% year-over-year increase in Comparable Adjusted EBITDA to $404.5 million, expanding the margin to 22.9%. Despite the drop in sales, the company’s Unit Case Volume Growth increased by 0.7%.

The primary drag on performance was the direct delivery business, which saw a 6.5% decline in comparable net sales, equating to $47 million. This decline was attributed to self-inflicted integration challenges following the merger, which led to temporary increased costs, including additional routes and customer service expenses, and required providing $3.7 million year-over-year in increased credits to customers. However, the company has stabilized its operations, successfully improving its delivery service rate back to ~95%, which is consistent with historical levels.

Primo Brands Corporation (NYSE:PRMB) operates as a branded beverage company in North America. It offers solutions through water dispensers, direct delivery of refillable/reusable bottles, a pre-filled Water exchange program, and water filtration appliances, as well as operates self-service water refill stations.

While we acknowledge the potential of PRMB to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PRMB and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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