Primo Water Corp

PRMW: XTSE (CAN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	CAD 24.20	Ddsd	Gnwcmscy

Primo Water Posts a Strong Second Quarter Despite Economic Turbulence

Zain Akbari

Aug 11, 2022

Our $16 (CAD 20.50) per share valuation of Primo Water should rise by a mid-single-digit percentage (similar to the trading price’s reaction) after it posted strong second-quarter earnings. The firm appears to be on pace to meet our long-term expectations (mid-single-digit percentage annual revenue growth, roughly 20% adjusted EBITDA margins). At current levels, the shares seem attractive, with market sentiment seemingly overly focused on the impact of near-term economic turbulence.

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