Philip Morris’s Strategic Positioning and Regulatory Advancements Drive Buy Rating

Stifel Nicolaus analyst Matthew Smith, CFA has maintained their bullish stance on PM stock, giving a Buy rating on June 13.

Matthew Smith, CFA has given his Buy rating due to a combination of factors related to Philip Morris’s strategic positioning and regulatory advancements. The initiation of the FDA’s review process for Philip Morris’s Modified Risk Tobacco Product (MRTP) applications for ZYN products is a significant development. This process, which follows the earlier PMTA authorization, could allow Philip Morris to market ZYN with reduced risk claims, enhancing its competitive edge in the tobacco industry.
Smith believes that the likelihood of ZYN receiving MRTP authorization is high, supported by FDA’s previous positive commentary on similar products. Furthermore, Philip Morris’s growth profile remains strong compared to its global consumer staples peers, driven by its shift towards smoke-free products and effective pricing strategies. Despite recent multiple expansions, Smith sees continued potential for upside in Philip Morris’s stock, supported by durable growth momentum and favorable market dynamics.

According to TipRanks, Smith, CFA is a 4-star analyst with an average return of 13.3% and a 58.93% success rate. Smith, CFA covers the Consumer Defensive sector, focusing on stocks such as Philip Morris, Lamb Weston Holdings, and Westrock Coffee.

In another report released on June 13, Barclays also maintained a Buy rating on the stock with a $220.00 price target.