Philip Morris (PM) Stock Forecast & Price Target

Philip Morris International (PMI) is projected to achieve an organic revenue growth rate of 6% to 8% over the next two years, driven by its ongoing market share gains. The company's recent acquisition of Swedish Match enhances its position in both smokable products and the growing smoke-free category, particularly with its Iqos and Zyn brands leading in heated tobacco and nicotine pouches, respectively. Additionally, increased volume capacity is expected to enable PMI to expand its marketing efforts, potentially accelerating growth and market share in the smoke-free segment.

Philip Morris International has experienced a contraction in smoke-free revenue and profit contributions, creating concern about the sustainability of growth in this segment despite expectations for future improvement. Additionally, the slowdown in revenue growth, particularly due to the performance of nicotine pouches, has negatively impacted gross margins and earnings. These factors, combined with a revenue miss and weaker-than-expected performance in the U.S. market, contribute to a negative outlook for the company's financial stability moving forward.