Primo Prudently Refocuses on North American Segment, Still Hindered by a Saturated Water Market

As a pure-play water provider, Primo Water has built a solid product portfolio and manufacturing and distribution footprint to tap rising demand for better-quality drinking water in North America. However, we remain skeptical that the firm benefits from any durable competitive edge based on brand intangibles or cost advantages, given the lack of differentiation and intense local competition in the water category. As such, we have assigned a no-moat rating to the firm.