Philip Morris (PM) Stock Forecast & Price Target

Philip Morris International (PMI) is projected to achieve organic revenue growth of 6% to 8% over the next two years, supported by its continued market share gains and dominance in both smokable products and reduced-risk offerings such as heated tobacco and nicotine pouches. The recent acquisition of Swedish Match enhances PMI's position in the market, allowing for greater promotional capabilities and expansion into the growing smoke-free category. Additionally, the ability to market more aggressively to current tobacco users positions PMI favorably for sustained growth, potentially leading to further market share gains.

Philip Morris International (PMI) has experienced a contraction in smoke-free revenue and profit contributions, with expectations of only modest improvements in the future despite a normalization of combustible volumes. The company's reliance on nicotine pouches has led to a significant slowdown in revenue growth, adversely impacting gross margins and overall earnings. Additionally, recent reports indicate a revenue miss alongside softer-than-anticipated performance in the U.S. market, further underscoring the challenges facing PMI's financial outlook.