Philip Morris, the Consumer Defensive sector company, was revisited by a Wall Street analyst yesterday. Analyst Lisa Lewandowski from Bank of America Securities reiterated a Buy rating on the stock and has a $200.00 price target.
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Lisa Lewandowski’s rating is based on several key factors that highlight Philip Morris’s strong performance and future potential. Despite concerns about ZYN volumes in the US, the company has shown impressive growth in its smoke-free product segment, with a significant increase in volumes, sales, and gross profit. This has contributed to a notable improvement in gross margins, particularly in the smoke-free category.
Furthermore, Philip Morris has been a strong performer year-to-date, driven by its strategic execution and the growing profitability of its smoke-free products. The company’s ability to maintain robust growth in ZYN and IQOS volumes, along with the support from its combustible products, underpins the Buy rating. The stock’s price objective of $200 reflects a premium valuation, justified by the company’s operational strength and positive outlook.
In another report released today, Barclays also maintained a Buy rating on the stock with a $225.00 price target.