Philip Morris International Initiated with Buy Rating by Jefferies

Jefferies has initiated coverage on Philip Morris International with a Buy rating, highlighting its success in Heated Tobacco and Oral Nicotine Pouches. Analysts anticipate robust EBIT growth, viewing the stock as undervalued compared to industry peers. Wall Street estimates suggest a moderate upside potential for PM shares. The current average target price is $180.25, with a consensus rating of 2.1 (Outperform). The GF Value suggests a potential downside of 26.05% from the current price.

Jefferies has initiated coverage on Philip Morris International (PMI) with a Buy rating, highlighting the company's success in the heated tobacco and oral nicotine pouch segments. The stock, which has delivered an impressive 50% return year-to-date, currently trades near its 52-week high of $186.69 [1].

Analysts at Jefferies expressed confidence in PMI’s leadership position in these segments, anticipating sustainable high single-digit EBIT expansion in the medium term. The company maintains strong financial health with an overall "GOOD" rating from InvestingPro, supported by impressive gross profit margins of 65.7% [1].

While PMI trades at a premium compared to other tobacco companies, Jefferies noted that its shares do not appear expensive when measured against blue chip stocks in the Food and Household Personal Care sectors. The firm highlighted PMI’s superior top-line and bottom-line growth prospects compared to these peer groups [1].

Jefferies also pointed to PMI’s elevated shareholder cash returns as another positive factor supporting its Buy recommendation. In other recent news, PMI has reaffirmed its 2025 profit forecast, projecting diluted earnings per share (EPS) between $7.01 and $7.14 [1].

Several other analysts have also provided positive ratings for PMI. Bank of America raised its price target to $200, maintaining a Buy rating, following positive remarks from the company’s CFO about its smoke-free product strategy [1]. Stifel reiterated its Buy rating with a price target of $186, emphasizing the importance of European growth for the company’s smoke-free products [1]. UBS analysts maintained a Neutral rating with a $170 price target, noting anticipated improvements in the U.S. market for ZYN nicotine pouches [1].

PMI continues to expand its smoke-free brands, including IQOS, ZYN, and VEEV, across various countries, aiming for significant sales contributions from these products. The company also projects a positive impact on earnings per share growth due to favorable foreign exchange conditions. Lastly, the FDA and U.S. Customs and Border Protection seized nearly $34 million worth of illegal e-cigarettes, highlighting ongoing regulatory efforts to curb unauthorized tobacco products [1].

Institutional investors have also shown confidence in PMI. Callahan Advisors LLC raised its holdings in PMI by 31.5% during the first quarter, according to its most recent 13F filing with the SEC [3]. The company's stock has a market capitalization of $281.50 billion, a PE ratio of 37.29, a PEG ratio of 2.58, and a beta of 0.51 [3].

The current average target price for PMI shares is $180.25, with a consensus rating of 2.1 (Outperform). The GF Value suggests a potential downside of 26.05% from the current price [3].

References:
[1] https://www.investing.com/news/analyst-ratings/jefferies-initiates-philip-morris-stock-with-buy-rating-220-price-target-93CH-4127485
[2] https://www.marketscreener.com/quote/stock/PHILIP-MORRIS-INTERNATION-2836703/news/Philip-Morris-Jefferies-initiates-coverage-with-a-buy-50469385/
[3] https://www.marketbeat.com/instant-alerts/filing-callahan-advisors-llc-has-203-million-stock-holdings-in-philip-morris-international-inc-nysepm-2025-07-11/