Philip Morris (PM) Stock Forecast & Price Target

Philip Morris International (PMI) is projected to achieve organic revenue growth rates between 6% to 8% over the next two years, fueled by ongoing market share gains in both smokable products and the expanding smoke-free category. The recent acquisition of Swedish Match positions PMI advantageously within the oral tobacco and nicotine pouch market, further solidifying its leading brands, Iqos and Zyn. With enhanced volume capacity, PMI is expected to aggressively promote its products, capitalizing on marketing opportunities to attract both current tobacco users and non-nicotine pouch users, potentially driving sustained growth in revenue and market presence.

Philip Morris International's recent financial performance indicates a contraction in smoke-free revenue and profit contributions, despite expectations for future improvements as combustible volumes stabilize. The company's revenue growth has shown a marked slowdown, particularly with nicotine pouches, leading to adverse effects on gross margin and earnings. Furthermore, a revenue miss coupled with softer-than-anticipated performance in the U.S. market raises concerns about the company's ability to sustain growth amid increasing competitive pressures.