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.
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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. 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).
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This article is originally published at Insider Monkey.
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