Market Perspective on Philip Morris Shares: Bullish or Bearish Outlook from Wall Street?
In the world of global tobacco giants, Philip Morris International (PM) continues to garner a modestly positive outlook from analysts, despite a recent dip in share prices.
On July 22, despite reporting a better-than-expected Q2 2025 adjusted EPS of $1.91, shares of PM tumbled 8.4%. However, this downturn hasn't shaken the confidence of analysts, with the consensus rating leaning towards a "Moderate Buy" based on a broader analyst pool.
Over the past 52 weeks, PM stock has surged 38.3%, outperforming the Consumer Staples Select Sector SPDR Fund's (XLP) 1.6% rise and the broader S&P 500 Index ($SPX) which gained 18.4%. The stock is currently trading below the mean price target of $193.38, indicating a potential for growth.
Analysts' average price target ranges between approximately $186.27 and $194.75, with a high-end target up to $220.00 and a low-end target near $135.00 to $175.00. This implies an upside of about 9.4% to 18.9% from the current share price, depending on the source. Some firms, like Barclays, even provide a strong buy rating with higher targets at $225.
Key details highlight strong growth from PM's smoke-free products like IQOS and ZYN, as well as solid financials. However, some analysts caution about risks from leverage and valuation.
Recent developments include UBS raising its price target on PM to $181, and maintaining a "Neutral" rating due to strong smoke-free margin growth driven by IQOS and ZYN.
Total sales for Q2 2025 rose 7.1% to $10.1 billion, but ZYN shipments came in at 190 million cans, missing analysts' estimates. Despite this, PM's earnings surprise history is promising, as it beat the consensus estimates in the last four quarters.
As of now, the consensus among 14 analysts covering the stock is a "Strong Buy." PM's product portfolio includes traditional cigarettes, smoke-free alternatives like IQOS and ZYN, and expanding offerings in wellness and healthcare. The company, with a market cap of $253.7 billion, continues to be a significant player in the industry.
For more information, please view the website's Disclosure Policy here. Sohini Mondal did not have positions in any of the securities mentioned in the article at the time of publication.
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In the context of PM's stock performance and analysts' opinions, despite a recent decline in share prices on July 22, the consensus rating remains "Moderate Buy," indicating a potential for growth, as the average price target ranges from $135.00 to $220.00. Analysts, like Barclays, even provide a strong buy rating with higher targets at $225, based on PM's strong financials and the growth potential of products like IQOS and ZYN.
