Primo Brands (PRMB) Q1 revenue fell below estimates due to seasonal timing issues, but the company reaffirmed its full year guidance, reflecting confidence in the business trajectory, Deutsche Bank analyst Steve Powers said in a note to clients Friday.

A shortfall in organic revenue growth was primarily due to the timing of Easter promotions for the Poland Spring brand, which is expected to normalize and benefit Q2, the bank's analyst said.

Earnings before interest, taxes, depreciation, and amortization in Q1 exceeded estimates by 9%, driven by synergy capture from cost-saving measures in selling, general and administrative expenses, information technology and operational consolidations, Deutsche Bank added.

The firm expects Q2 revenue to mirror the previous three months as gains will be tempered by reduced shipments of the Ozarka brand due to tornado-related facility damage.

Deutsche Bank is maintaining its buy rating on Primo Brands' stock with a $40 price target.

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