Philip Morris International Shares Soar 1.24% on Alternative Nicotine Demand

Philip Morris International (PM) shares surged to a record high today, with an intraday gain of 1.24%.

The strategy of buying PM shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years. The strategy outperformed the market with an annualized return of 13.68% compared to the S&P 500's 9.93% return over the same period. However, the recent performance has been underwhelming, with a 6-month return of -11.64% due to the recent market downturn. This highlights the importance of considering both the longer-term performance and recent short-term trends when evaluating such strategies..

Philip Morris International has seen a significant boost in its stock price due to the growing demand for its alternative nicotine products. The company's focus on smoke-free alternatives like IQOS and ZYN has driven substantial growth, contributing to its positive performance in 2025.

Barclays has increased its price target for PM shares from $175.00 to $205.00, reflecting a bullish outlook on the company's future prospects. This adjustment underscores the market's confidence in Philip Morris International's strategic direction and financial health.

Philip Morris International has invested over $10 billion in the development and commercialization of smoke-free products. This substantial investment is part of the company's broader strategy to transition away from traditional cigarettes and towards more sustainable and healthier alternatives.