Primo Water Corp

PRMW: XTSE (CAN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	CAD 47.70	Zcb	Rjpdplww

Primo Water Earnings: Progress on Customer Acquisition, but Labor Cost Pressure Persists

Dan Su

Aug 10, 2023

We are not planning any material changes to our $16.20 (CAD 22) fair value estimate for Primo after absorbing second-quarter results that met our projections, with sales up 4% and EPS at $0.13. We are maintaining our 2023 forecasts for $2.35 billion in sales and $465 million in adjusted EBITDA, in line with management guidance, and we see no reason to alter our 10-year estimates for mid-single-digit sales growth and 10% average operating margins. Shares trade in a range we’d consider fairly valued.

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