Philip Morris (PM) Stock Forecast & Price Target

Philip Morris International (PMI) is positioned for strong growth, with anticipated organic revenue increases of 6% to 8% over the next two years, driven by continued market share gains. The recent acquisition of Swedish Match enhances PMI's portfolio in the expanding smoke-free category, particularly bolstering its presence in heated tobacco and nicotine pouches, which are expected to gain traction in various markets. Furthermore, improved volume capacity allows PMI to enhance its marketing efforts, targeting current tobacco users to accelerate further growth in the smoke-free segment.

Philip Morris International's (PMI) smoke-free revenue and profit contribution experienced a contraction, suggesting potential challenges in maintaining growth momentum within its non-combustible product segments. The company is facing a slowdown in revenue growth, particularly in the nicotine pouch category, which is adversely affecting gross margins and overall earnings. Additionally, softer-than-expected revenue in the U.S. market further underscores the difficulties PMI may encounter in achieving its financial objectives.