In a report released yesterday, Bonnie Herzog from Goldman Sachs reiterated a Buy rating on Philip Morris, with a price target of $200.00.
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Bonnie Herzog’s rating is based on Philip Morris’s strong performance in recent quarters and its strategic focus on transitioning to smoke-free products. The company has demonstrated impressive financial results, with significant growth in both top-line and earnings per share, even when adjusted for currency fluctuations. This growth is expected to continue as Philip Morris aims to become predominantly smoke-free by 2030, which is a key factor in the Buy rating.
Furthermore, the expansion of their smoke-free product portfolio, including brands like IQOS, ZYN, and VEEV, is expected to drive consumer base growth and increase product usage occasions. Despite some investor concerns about the competitive landscape in the US nicotine pouch market, Herzog believes that the growth potential for ZYN remains strong. The expectation of robust earnings growth in the coming years, particularly in FY25, supports the positive outlook and suggests limited downside risk, making Philip Morris a compelling investment opportunity.
In another report released on October 25, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $175.00 price target.