Philip Morris International Analyst Initiates Coverage on a Bullish Note; Top 5 Initiations for Thursday

As an investor, keeping track of analyst initiations can provide valuable insights into the market's sentiment and potential opportunities. Today, we're highlighting the top 5 analyst initiations for Thursday, with a particular focus on Philip Morris International (PM), which has received a bullish note from Morgan Stanley. Let's dive into the details and explore what these initiations mean for investors.



1. Morgan Stanley Initiates Philip Morris International at Overweight With $140 Price Target
Morgan Stanley has initiated coverage of Philip Morris International (PM) with an overweight rating and a price target of $140. This bullish note is supported by the company's strategic shift towards smoke-free products, strong fundamentals, commitment to innovation and cost efficiencies, and resilience in navigating a dynamic operating environment. The analyst's price target of $140 is higher than the current stock price of $118.51, indicating a potential upside of approximately 18%.



2. Moderna price target drops, fintech Outperform, FDA hits tobacco
Moderna's (MRNA) price target has been slashed to $38 from $70 by Morgan Stanley (MS), implying an 11% potential upside based on its last closing price. Analysts cite lowered 2025 revenue outlook and vaccine market competition as reasons for the reduced target. Meanwhile, fintech leaders SoFi (SOFI) and Affirm (AFRM) have been initiated by William Blair in research coverage, and are currently both rated Outperform. Tobacco stocks, such as British American Tobacco (BTI), Imperial Brands (IMBBY), and Philip Morris (PM), are under pressure after the US Food and Drug Administration (FDA) announces a proposal to cap nicotine levels in cigarettes.

3. Philip Morris Resilient on Smoke-Free Transition Efforts and Pricing
Philip Morris' third-quarter 2024 financial performance was affected by currency fluctuations, particularly with weaknesses in the Egyptian Pound and Argentine Peso, alongside a strong Swiss Franc. This led to a 6-cent currency impact on adjusted diluted EPS. Philip Morris anticipates an ongoing unfavorable currency impact of 40 cents for the full year, making the company more vulnerable in volatile currency environments. Apart from this, strict government regulations, such as mandatory precautionary labels and self-critical advertisements, hinder cigarette consumption. Despite these challenges, Philip Morris' strong fundamentals, coupled with its commitment to innovation and cost efficiencies, position the company well for sustained growth.



4. United Natural Foods, Inc. UNFI
UNFI currently sports a Zacks Rank of 1 (Strong Buy). UNFI delivered a trailing four-quarter earnings surprise of 553.1%, on average. The consensus estimate for United Natural’s current financial-year sales and earnings suggests growth of 0.3% and 442.9%, respectively, from the year-ago period’s reported figure.

5. Freshpet, Inc. FRPT
Freshpet, a pet food company, presently sports a Zacks Rank #1. FRPT has a trailing four-quarter earnings surprise of 144.5%, on average. The Zacks Consensus Estimate for Freshpet’s current financial-year sales and earnings suggests growth of 27.2% and 228.6%, respectively, from the year-ago period’s reported figure.

In conclusion, the top 5 analyst initiations for Thursday highlight a mix of bullish and bearish notes, with Philip Morris International's bullish note from Morgan Stanley standing out. Investors should consider the specific aspects of Philip Morris International's business strategy that led to this bullish note, as well as the potential challenges and opportunities presented by the other initiations. By staying informed about analyst initiations, investors can make more informed decisions and capitalize on potential investment opportunities.