Philip Morris, the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Gerald Pascarelli from Needham maintained a Buy rating on the stock and has a $195.00 price target.
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Gerald Pascarelli has given his Buy rating due to a combination of factors including Philip Morris’s ability to deliver an earnings per share (EPS) beat despite a slight revenue miss. The company’s performance was bolstered by better-than-expected shipments of heated tobacco units (HTU), which exceeded guidance, demonstrating strong demand in this segment.
Additionally, Philip Morris’s full-year guidance reflects robust growth expectations, with local currency EPS projected to grow by 12.5% at the midpoint. The adjusted EPS is also expected to see growth between 13-15%, supported by an optimistic outlook for operating income growth and a favorable tax rate. Despite some challenges, such as currency impacts and modest cigarette volume decline, the company’s smoke-free product segment is anticipated to grow significantly, further justifying the Buy rating.
In another report released on July 18, Goldman Sachs also reiterated a Buy rating on the stock with a $200.00 price target.