Philip Morris (PM) Stock Forecast & Price Target

Philip Morris International is projected to achieve organic revenue growth of 6% to 8% over the next two years, with expectations of continued market share gains in the smoke-free category. The recent acquisition of Swedish Match provides PMI with strategic advantages, allowing for diversification beyond traditional tobacco products and a foothold in the U.S. market for its heated tobacco offerings. Additionally, enhanced marketing efforts targeting current tobacco users and increased volume capacity are anticipated to bolster PMI's market position and drive further acceleration in the smoke-free segment.

Philip Morris International's smoke-free revenue and profit contributions have contracted sequentially, indicating challenges in maintaining growth in this segment. Furthermore, the company is experiencing a marked slowdown in revenue growth, particularly due to the reliance on nicotine pouches, which is negatively affecting gross margins and overall earnings. Additionally, the revenue miss and softer-than-expected performance in the U.S. market raise concerns about the sustainability of PMI's growth trajectory in the face of evolving consumer trends.