Philip Morris (PM) wants to convert customers to heated tobacco products with a new launch in Texas. The tobacco company has released IQOS, the most popular heated tobacco device globally, in Austin. This launch has the company testing the waters to determine the interest in heated tobacco products. That will see it promote the device to those old enough to smoke tobacco, as well as current nicotine users.
Philip Morris’ IQOS is already outdated, but the company doesn’t have approval to sell its newer ILUMA heated tobacco product in the U.S. just yet. Even so, it can promote heated tobacco as a safer alternative to cigarettes by avoiding harmful chemicals, thanks to approval from the U.S. Food & Drug Administration (FDA).
Philip Morris Plans to Bring IQOS to More U.S. Cities
Philip Morris’ plan to cultivate heated tobacco users in the U.S. comes with additional launches. The company intends to release the IQOS device in three other cities. However, it hasn’t been revealed when these extra launches will take place.
What investors do know is that Philip Morris wants to obtain a significant share of the U.S.’s growing heated tobacco market. The company believes it can reach a 10% share of this audience by 2030 if it plays its cards right.
Philip Morris’ interest in heated tobacco products comes as demand for traditional tobacco decreases. This even has the company reportedly seeking to sell its cigar business as it puts more distance between itself and traditional tobacco products.
Is PM Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Philip Morris is Strong Buy based on eight Buy and one Sell ratings over the last three months. With that comes an average price target of $159, a high of $175, and a low of $120. This represents a potential 2.94% upside for PM stock.
