UBS Lifts Philip Morris International (PM) Price Target by $14

With an annual dividend yield of 3.23%, Philip Morris International Inc. (NYSE:PM) is included among the 14 Best Blue Chip Dividend Stocks to Buy According to Hedge Funds.

UBS Lifts Philip Morris International (PM) Price Target by $14

Philip Morris International Inc. (NYSE:PM) operates as a global tobacco company. Its products include cigarettes and smoke-free alternatives. Its smoke-free business also covers wellness and healthcare products, along with consumer accessories such as lighters and matches.

On July 2, UBS upped its price recommendation on Philip Morris International Inc. (NYSE:PM) from $168 to $182, while maintaining a ‘Neutral’ rating on the shares.

With smoking rates falling with every passing year, Philip Morris International Inc. (NYSE:PM) is rapidly shifting from a legacy cigarette company into a high-margin consumer staples compounder driven by next-gen nicotine products. The company’s smoke-free products are now responsible for roughly 41% of its revenue, with gross margins near 69.5%. Additionally, the contribution from alternative products like IQOS and ZYN has effectively doubled, marking a structural mix shift rather than a cyclical improvement.

Philip Morris International Inc. (NYSE:PM) is also known for its strong commitment to shareholders. The tobacco giant has grown its annual dividend every year since becoming a public company in 2008, representing a total increase of 219.6%, or a CAGR of 7.1%.

While we acknowledge the risk and potential of PM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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