Primo Brands (PRMB) Q1 results will indicate "continued strong consumer demand" and reinforce the beverage company's confidence in its full-year outlook, RBC Capital Markets said in an earnings preview on Tuesday.

The analysts said they believe "fundamentals will prove robust once again in Q1," as they expect "resilient consumer demand."

RBC said the company's shift to legacy BlueTriton's reporting structure means Q1 has one less day compared to a year ago, which creates a headwind, distorts comparisons, and could make Q1 results look "less positive on a comparable basis."

The firm said Primo Brands' premium labels will be insulated from new tariffs as it sources and sells its water within the US.

RBC has an outperform rating on the company's stock with a $40 price target.

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