Premium Brands Holdings: Buy, Sell or Hold?

Desjardins analyst Chris Li maintained a “Buy” rating on Premium Brands Holdings (Premium Brands Holdings Stock Quote, Chart, News, Analysts, Financials TSX:PBH) in a May 7 first-quarter recap, saying the company is taking steps in the right direction despite some timing-related softness.

“Given ongoing macro uncertainties, we remain at the low end of management’s 2026 guidance, with potential upside as market conditions improve in 2H,” Li said.

Li said first-quarter Adjusted EBITDA of about $171-million beat his $160-million estimate, helped by easing cost pressures. Same-facility organic volume growth was 6.1%, below his 10.0% forecast, but he said the shortfall was mostly tied to a QSR customer delaying a limited-time-offer launch into the second half.

Premium Brands maintained its 2026 financial targets, though it now expects same-facility organic volume growth in the high single digits, down from about 10%.

Li said pass-through pricing has largely offset higher beef costs, while the Stampede integration remains on track. He also pointed to deleveraging as a key catalyst, with Premium Brands expecting more than $1-billion in net proceeds from non-core asset monetizations over the next few years.

Li expects Premium Brands to generate Adjusted EBITDA of $874-million on revenue of $9.2-billion in fiscal 2026, improving to $991-million on revenue of $9.9-billion in fiscal 2027.

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