Boston, MA 03/24/2014 (wallstreetpr) – Primo Water Corporation (NASDAQ:PRMW) stock was initiated by analysts at B. Riley with a buy recommendation. The recommendation was contained in a note to investors issued Friday. Shared of the company reacted positively to the news.
Shares changed hands at $4.21, up 6.31 percent by closing bell Friday. Earlier on shares soared to a new 12-month high of $4.25. The day was characterized with a higher volume of shares changing hands more than in a normal session. Shares traded between $1.05 and $4.25 in the past 12 months.
Growing positive sentiments
Primo Water Corporation (NASDAQ:PRMW) provides purified bottled water and dispensers. It sells its products through retailers. Although the company remains a loss-making business, analysts have not been shy to speak well of its business and the potential for positive results in a short-term.
Analysts are convinced that Primo Water is striking the right cord in as far as growth is concerned. The company currently works alongside DS Waters of America Inc, which has taken over its bottling and distribution activities in some regions. The partnership between the companies was disclosed last November and the deal started moving things in January.
So far, the partnership has been noted to be paying dividend for Primo. The company has been able to increase sales on its various product segments and the trend is expected to continue in the current fiscal year.
Strength and opportunities
The partnership between Primo Water Corporation (NASDAQ:PRMW) and DS Water has helped the company to expand its market. But also, the company has been able to expand its gross margins across its product lines. This bodes well for the company towards turning tables on its losses.
Analysts say that the company will be able to breakout this year if it can continue to growth revenue as it is already doing and maintain gross margin at the same time. Moreover, attaining profitability will be possible if expenses and curbed going forward.
Primo Water Corporation (NASDAQ:PRMW) suffered $10.7 million loss in fiscal 2013, lower than the $111 loss suffered in 2012.
