Billionaire Daniel Sundheim’s 10 Stocks Picks with Huge Upside Potential

3. Philip Morris International Inc. (NYSE:PM)

D1 Capital Partners Equity Stake: $223.12 Million

Stock Upside Potential: 27.27%

Stock Performance (end Q2 – October 30): -19.34%%

Number of Hedge Fund Holders: 111

Philip Morris International Inc. (NYSE:PM) is one of billionaire Daniel Sundheim’s stock picks with huge upside potential. On October 22, analysts at Stifel reiterated a ‘Buy’ rating on Philip Morris International Inc. (NYSE:PM) and $180 price target.

The bullish stance comes on the heels of a robust third quarter, during which the company’s smoke-free portfolio continued to outgrow the industry by a clear margin while driving positive total volumes and top-line growth. Earnings per share in the quarter grew 13.2% as diluted EPS rose 17.3% to $2.24.

Philip Morris expects the third-quarter momentum to continue into year-end, with full-year EPS increasing by between 13.5% and 15.1%, ranging from $7.39 to $7.49 a share. It also expects organic revenue growth of 6% to 8%.

Stifel expects the inventory reduction headwind to be temporary and remains confident of the company’s top-line and EPS growth profile relative to consumer staple peers.

Philip Morris International Inc. (NYSE:PM) is a consumer goods company that sells a variety of products, with a strategic focus on shifting from traditional cigarettes to a portfolio of smoke-free alternatives. Its current products include traditional cigarettes (led by Marlboro), as well as smoke-free products like heated tobacco (e.g., IQOS), e-vapor, and oral nicotine pouches (e.g., ZYN).