Ticker: NSRGY

BMO has initiated coverage of Primo Brands (NYSE: PRMB) with an Outperform rating and a price target of $40, suggesting nearly 30% upside from $31.07. Strong growth in adjusted EBITDA and revenue driven by its water brands positions Primo as a compelling investment opportunity.

Laurent Freixe's appointment as Nestlé CEO raises concerns over potential earnings downgrades and sluggish sales growth. With stock down 15% in 2023, analysts anticipate a shift in strategy to boost innovation and regain consumer trust amid rising costs.