Tobacco group Philip Morris (PM) has fired up some key analysts after posting strong Q4 earnings. Four-star TipRanks-rated analyst Matthew Smith of Stifel raised his price target on Philip Morris to $160 from $145 and kept a Buy rating on the shares. He called the fourth quarter “the kind we have become accustomed to” with 10% constant currency growth in Earnings Per Share (EPS) topping estimates. He said that although Stifel had become accustomed to the momentum, PM’s revenue and margin expansion “remain a standout in consumer staples”.
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ZYN Pouches Draw Most Attention
UBS analyst Faham Baig upped his price target on Philip Morris to $120 from $105 but kept a sell rating after the Marlboro maker guided to another year of volume growth and high single digit EPS following a strong 2024 performance. Baig said that while the “trajectory” of smoke-free product IQOS continues to disappoint, he was pleased to see that the currency impact for 2025 was lower than feared due to yen and euro hedges. He also highlighted the better-than-expected volume guidance for ZYN nicotine pouches in the US.
Morgan Stanley analyst Eric Serotta raised the price target on Philip Morris to $155 from $140 and kept an Overweight rating on the shares. He also cited the firm’s stronger than expected Q4 results and full year 2025 guidance which he said increased Morgan Stanley’s confidence in the tobacco group’s robust growth prospects.
PM Having a Smoking 2025
The positive sentiments however did little to light up Philip Morris stock. It was flat in early trading at around $145. So far this year however the stock has grown around 20%. That’s been largely driven by the decision from the US Food and Drug Administration (FDA) in January to authorize ZYN nicotine pouches to be sold and marketed to help people quit smoking cigarettes.
Is PM a Good Stock to Buy?
On TipRanks, PM has a Moderate Buy consensus based on 4 Buy and 1 Sell rating. Its highest price target is $145. PM stock’s consensus price target is $135.60 implying an 6.10% downside.
