Philip Morris pullback offers ‘attractive buying point,’ says Stifel

Philip Morris (PM) shares are underperforming after the company reported a better-than-expected Q3 organic sales, profit margin expansion, and EPS growth, which Stifel analyst Matthew Smith attributes to the slight reduction in operating profit guidance, a weaker Q4 operating profit versus previous expectations, and U.S. ZYN dynamics. However, the firm believes the selloff is “an over-reaction” and recommends buying shares on the pullback, which it sees offering investors “an attractive buying point.” The firm maintain a Buy rating on Philip Morris.