Primo Brands (PRMB) is expected to face pressure in Q1 from extended service disruptions tied to winter storms and higher input costs linked to the Middle East conflict, RBC Capital Markets said in a note emailed Tuesday.

The firm said Q1 is likely to be the weakest quarter of the year and could be further affected by lost or unrecoverable delivery sales from the winter storms.

Retail business trends appear supportive, with sales growth of 6% in scanner data, RBC said, adding that the company has taken pricing on about 15% of its retail volume outside its core case pack business.

Primo Brands also remains highly sensitive to petroleum-linked costs, including resin, glass, aluminum and diesel fuel, though it has significant hedge coverage in place for 2026 and levers such as pricing and fuel surcharges, the note said.

Primo Brands is expected to report Q1 financial results on Thursday.

RBC maintained its outperform rating on Primo Brands and kept its price target at $28.

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