Citi analyst Simon Hales reiterated a Buy rating on Philip Morris (PM – Research Report) today and set a price target of $163.00.
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Simon Hales has given his Buy rating due to a combination of factors, primarily the strong performance and positive future outlook for Philip Morris. The company has shown remarkable growth towards the end of 2024, and the forecast for 2025 indicates continued strength. Notably, there is an expected 10.1% growth in heated tobacco unit volumes and significant expansion in the US nicotine pouch market.
Furthermore, Philip Morris’s robust revenue and margin growth in both combustible and smokeless products contribute to the positive outlook. Despite a slightly increased tax rate, the company’s earnings per share are projected to rise, with an upgraded forecast compared to previous guidance. The increased capacity for Zyn products in the US and the ongoing expansion of gross margins are expected to sustain this growth, leading to an updated price target of $163. These factors collectively underpin the Buy rating, highlighting a favorable risk to earnings profile.
According to TipRanks, Hales is a 4-star analyst with an average return of 4.3% and a 57.61% success rate. Hales covers the Consumer Defensive sector, focusing on stocks such as Diageo, Altria Group, and Philip Morris.
In another report released today, Bank of America Securities also maintained a Buy rating on the stock with a $160.00 price target.