Primo Water Corp

PRMW: XTSE (CAN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	CAD 39.40	Wwxss	Wfbkggtz

Strong Third-Quarter Results at Primo Water Showcase Strong Demand and Improving Service Levels

Zain Akbari

Nov 10, 2022

Similar to the shares’ trading reaction after quarterly results were announced, our $16 (CAD 20.50) per share valuation of no-moat Primo Water should rise by a mid-single-digit percentage, reflecting third-quarter earnings that have the firm trending above our full-year targets. Our long-term estimates remain intact (mid-single-digit percentage annual revenue growth, roughly 20% adjusted EBITDA margins). We see the shares as somewhat attractive, as prevailing sentiment appears to be overly focused on near-term economic turbulence.

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