Barrington Reaffirms Their Buy Rating on Primo Water Corp

In a report released today, Michael Petusky from Barrington maintained a Buy rating on Primo Water Corp (NASDAQ: PRMW), with a price target of $20. The company’s shares opened today at $13.78.

Petusky commented:

“We are maintaining our OUTPERFORM investment rating on PRMW and our price target remains $20. We continue to think that 2018 financial guidance is likely conservative and believe that several of Primo’s initiatives could drive above-average growth and margin expansion for at least the next three to five years. We arrive at our price target of $20 by attaching a 15x multiple to our 2018 adjusted EBITDA estimate. We assume approximately $250 million in net debt 12 months from now.”

According to TipRanks.com, Petusky is a 4-star analyst with an average return of 12.1% and a 60.5% success rate. Petusky covers the Healthcare sector, focusing on stocks such as Anika Therapeutics Inc, Varian Medical Systems, and Merit Medical Systems.

Primo Water Corp has an analyst consensus of Moderate Buy, with a price target consensus of $20.

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Based on Primo Water Corp’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $3.03 million. In comparison, last year the company had a GAAP net loss of $11.86 million.

Based on the recent corporate insider activity of 50 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of PRMW in relation to earlier this year.

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Primo Water Corp. is provider of multi-gallon purified bottled water, self-service refill water and water dispensers sold. It operates through the following segments: Refill, Exchange, and Dispensers.