UBS Reiterates Philip Morris Price Target Amid ZYN Supply Recovery

On June 4, UBS analysts reiterated their Neutral rating for Philip Morris International Inc. (NYSE:PM) while keeping the price target at $170. The update came as the tobacco giant expects the U.S. market for its ZYN nicotine pouches, which have had supply problems, to improve.

UBS analysts noted that ZYN anticipates a gradual improvement in product uptake as stock constraints ease in the coming months. With projections that combustible cigarette sales will normalize to a low single-digit decrease, Philip Morris International Inc. (NYSE:PM) remains confident in its dominant position in the industry. Additionally, the company benefits from its smoke-free product line, which offer increase gross margins.

Moreover, thanks to favorable foreign currency conditions, the company’s EPS growth has been fueled by the strong U.S. dollar. With UBS predicting an 11% increase to $1.50 per share in the third quarter of 2025, this financial support may have an impact on the company’s dividend growth strategy.

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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Disclosure: None.