Why Goldman Sachs Is Neutral On Primo Brands Corporation (PRMB)

Primo Brands Corporation (NYSE:PRMB) is among the best US stocks to buy under $20. On November 25, Bonnie Herzog, an analyst at Goldman Sachs, trimmed the price target on Primo Brands Corporation (NYSE:PRMB) to $18 from $21, while maintaining a Neutral stance on the stock, according to TheFly. In a research note, the analyst raised concerns regarding the sales decline, which she believes will be faster and more prolonged than anticipated. With respect to that, the firm expects incremental headwinds for the company in the times ahead.

Herzog names the company’s direct delivery business, which contributes heavily to the sales, as the one facing service disruptions. This, in turn, fuels worries about the company’s near-term ability to rebound. Additionally, a blurred visibility into the recovery timeline and the risk of further strain on the direct-delivery segment contribute to the overall cautious outlook.

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Recently, many other analysts have covered Primo Brands Corporation (NYSE:PRMB). On November 19, Truist Financial analyst Bill Chappell reaffirmed the ‘Buy’ rating on the stock. Earlier on November 7, BMO Capital slashed the price target on PRMB to $39.00 from $42.00, with an unchanged ‘Outperform’ rating. The analyst cited the company’s third-quarter results, in which retail performance exceeded expectations.

Primo Brands Corporation (NYSE:PRMB) is a Connecticut-based branded beverage company. Incorporated in 1976, the company provides healthy hydration options across North America.

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