Primo Brands (PRMB) is expected to see its Q3 top-line improve 1 to 1.5 points sequentially from -2.5% reported in Q2, RBC Capital Markets said in a Tuesday note.

Analysts at RBC said that data from its tracked channels indicated that Primo Brands' dollar sales growth was 2.4% in Q3, reflecting a sequential acceleration from Q2 and in the underlying 2-year average trend.

The data was further supportive of management's expectation of 2% growth for the retail business in H2 after recording a decline in Q2 on account of transitory headwinds, RBC said.

Additional data and feedback also showed that Primo Brands' delivery business is "moving in the right direction" following service disruptions caused by merger integrations, RBC said.

Primo Brands is scheduled to report its Q3 results on Thursday.

RBC maintained the company's rating as outperform with a $37 price target.

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