Undervalued Potential? Stifel Analyst Suggests Philip Morris Shares Don't Reflect Growth Avenues From Smoke-Free Transition
Portfolio Pulse from Anusuya Lahiri
Stifel analyst Matthew Smith reiterated a Buy rating for Philip Morris International Inc (PM) with a $114 price target. Smith believes that PM's shares are undervalued and do not reflect the growth potential from its smoke-free transition. PM's new medium-term guidance targets include 6-8% organic sales growth, 8-10% operating profit growth, and 9-11% EPS growth. PM is targeting 180 to 200 billion heated tobacco unit volumes by 2026 and nicotine pouch cans in the 800 million to 1 billion range. PMI gains access to IQOS in the U.S. beginning in May 2024.
October 02, 2023 | 6:17 pm
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Philip Morris's shares are undervalued according to Stifel analyst Matthew Smith, who reiterated a Buy rating with a $114 price target. The company's transition to smoke-free products and new medium-term growth targets are expected to drive growth.
The analyst's positive outlook on Philip Morris, along with the company's ambitious growth targets and transition to smoke-free products, could potentially drive the stock price up in the short term. However, the actual impact will depend on the company's ability to meet these targets and successfully transition to smoke-free products.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100