Philip Morris (PM – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Eric Serotta from Morgan Stanley maintained a Buy rating on the stock and has a $156.00 price target.
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Eric Serotta has given his Buy rating due to a combination of factors, including Philip Morris’s strong financial performance and promising growth outlook. The company showed impressive results in the fourth quarter, exceeding expectations with a significant increase in adjusted earnings per share and net revenue. This performance was largely driven by robust growth in its smoke-free product portfolio, such as IQOS and Zyn, which have been gaining international traction and are set to expand further with an upcoming U.S. launch.
Furthermore, Philip Morris is positioned as a leader in the consumer packaged goods sector, especially in the context of its smoke-free products, which already constitute a substantial portion of its revenue and are expected to grow significantly by 2030. The company’s ability to deliver growth above market expectations and its strategic initiatives have reinforced Serotta’s confidence in its future performance. Additionally, the updated guidance for fiscal years 2025 and 2026, along with increased earnings estimates and favorable foreign exchange impacts, have contributed to raising the price target, supporting the Buy rating.
Serotta covers the Consumer Defensive sector, focusing on stocks such as Celsius Holdings, Philip Morris, and Altria Group. According to TipRanks, Serotta has an average return of -11.4% and a 50.00% success rate on recommended stocks.
In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $143.00 price target.