02:29 PM EDT, 05/21/2024 (MT Newswires) -- Primo Water ( PRMW ) shares have been one of the better performers across RBC's coverage year-to-date. The stock is +43% versus the market +11% and consumer staples up +9%.

Analyst Nik Modi recently presented to the Primo Board of Directors (last time was 2019). "While we have always been bullish on the stock, our preparation for this board presentation has made us realize that the opportunity at Primo is larger than we originally thought."

Primo Water ( PRMW ) expects the ~US$26 billion U.S. Bottled Water category to grow at a ~5% CAGR in the coming years, and Modi thinks the company can likely exceed that via share gains and bolt-on M&A. He believes the category will continue to benefit from a number of secular tailwinds including health & wellness, aging water infrastructure, environmental awareness, and concerns over municipal water quality.

Hiking target from US$19 to US$30 and making Primo Water ( PRMW ) one of RBC's top picks. Maintain Outperform.

Price: 29.90, Change: +0.66, Percent Change: +2.26