In a report released today, Eric Serotta from Morgan Stanley maintained a Buy rating on Philip Morris (PM – Research Report), with a price target of $156.00.
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Eric Serotta’s rating is based on Philip Morris International’s strong positioning in the smoke-free product market. The company’s leadership is optimistic about the sustained growth of its smoke-free portfolio, which includes products like IQOS and Zyn. This growth is expected to be driven by the international success of IQOS, the robust expansion of Zyn, and the anticipated launch of IQOS in the U.S., positioning Philip Morris as a standout in the consumer packaged goods sector.
Furthermore, the company’s smoke-free revenue has significantly increased, reflecting progress towards its goal of generating two-thirds of its revenue from smoke-free products by 2030. The profitability of these smoke-free products has also seen an increase, outpacing traditional combustible products. Despite current supply constraints, Philip Morris remains confident about Zyn’s growth potential in the U.S., highlighting an expanding market opportunity. Serotta’s confidence in the company’s ability to meet its financial targets through 2026 underpins the Buy rating.
Serotta covers the Consumer Defensive sector, focusing on stocks such as Celsius Holdings, Philip Morris, and Altria Group. According to TipRanks, Serotta has an average return of -10.4% and a 47.83% success rate on recommended stocks.
In another report released on February 17, J.P. Morgan also maintained a Buy rating on the stock with a $160.00 price target.