Primo Brands Corporation (PRMB): A Bull Case Theory

We came across a bullish thesis on Primo Brands Corporation on X.com by FullySynergized. In this article, we will summarize the bulls’ thesis on PRMB. Primo Brands Corporation's share was trading at $21.86 as of October 8th. PRMB’s forward P/E was 11.85 according to Yahoo Finance.

The largest pure-play water company in the U.S., following its merger with BlueTriton, has faced initial integration challenges that led to a guidance reduction. Despite this rocky start, the company appears to have navigated the worst of the merger-related disruptions. On a pro forma basis, factoring in expected cost synergies, the company’s earnings power positions it as one of the most undervalued consumer staples in the market, offering an attractive entry point before its financial performance fully reflects the merger’s benefits.

While Q4 retail comps were impacted by last year’s hurricane, this is a temporary headwind, and the underlying fundamentals remain strong. The company is currently trading at approximately 8.5x trough EBITDA, reflecting a significant discount to its intrinsic value. Looking beyond near-term volatility, the combination of scale, cost synergies, and improving operational execution suggests meaningful upside potential, particularly as 2026 approaches and the earnings impact of synergies becomes more visible.

Investors who focus past the short-term noise may benefit from a substantial rerating as the market recognizes the company’s enhanced earnings power and durable cash flows. Overall, the water company represents a compelling investment with a strong risk/reward profile, driven by both the merger’s long-term benefits and the attractive valuation relative to its consumer staple peers.

Previously we covered a bullish thesis on Celsius Holdings, Inc. (CELH) by One-Hovercraft-1935 in May 2025, which highlighted its strong brand equity, resilience amid distributor issues, international expansion, and strategic acquisitions like Alani Nu. The company's stock price has appreciated approximately by 61.55% since our coverage. The thesis still stands as Celsius continues to grow globally. FullySynergized shares a similar perspective but emphasizes Primo Brands’ undervaluation post-BlueTriton merger and cost synergies.

Primo Brands Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 72 hedge fund portfolios held PRMB at the end of the second quarter which was 66 in the previous quarter. While we acknowledge the potential of PRMB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.