UBS Raises Philip Morris (PM) Price Target on Smoke-Free Margin Growth

Philip Morris International Inc. (NYSE:PM) ranks among the best low volatility stocks to buy according to analysts. While maintaining its Neutral rating on Philip Morris International Inc. (NYSE:PM), UBS increased its price target for the tobacco giant’s stock from $170 to $181 on July 14. The price target increase is in line with UBS’s revised earnings per share estimates, which were increased by 0.4% for fiscal year 2025, 5.1% for fiscal year 2026, and 5.0% for fiscal year 2027.

UBS emphasized Philip Morris’s impressive growth in Smoke-Free gross margins, which are expected to rise from 60.7% in fiscal year 2022 to 70.9% in fiscal year 2025. This improvement is bolstered by scale/productivity gains from IQOS and U.S. ZYN products, which have margins of about 85%.

With fiscal year 2025 projections of 873 million cans and $2.9 billion in revenues, the firm observed robust volume growth for ZYN in the US market, aided by inventory replenishment.

Philip Morris International Inc. (NYSE:PM) is a global tobacco company that provides services to consumers in over 180 countries. With Marlboro as its signature product, the firm stands out among the titans of “Big Tobacco.”

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