Primo Brands (PRMB) is likely to report a "strong" Q4 when it reports its earnings on Thursday before the opening bell, RBC Capital Markets said in a note.

Despite the positive outlook, RBC Capital said Friday that it expects the stock to "face some pressure" heading into earnings as a lock-up period preventing One Rock Capital and Metropoulos from selling their holdings has expired. The two firms collectively hold 58% of the company.

RBC analysts said the end of a lock-up period frequently "proves favorable for consumer stocks," and that they expect any momentum for the beverage company "to be sustainable given its strong fundamentals."

The firm also said it sees "multiple potential post-close value unlocks" that could result in the company's stock price surpassing $40.

RBC has an outperform rating on the stock with a $38 price target.

Price: 33.21, Change: -0.34, Percent Change: -1.01