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, driven by continued market share gains in both traditional and smoke-free product categories. The acquisition of Swedish Match enhances PMI's dominance in the nicotine market, positioning it favorably to capitalize on the accelerating demand for smoke-free alternatives, particularly the Iqos and Zyn brands. Enhanced volume capacity is expected to allow PMI to expand its marketing efforts significantly, further supporting growth and market penetration among non-nicotine pouch users.

Philip Morris International (PMI) is facing challenges with sequential contractions in smoke-free revenue and profit contributions, which may hinder overall performance despite expectations of eventual improvements. Additionally, the growth of nicotine pouches is slowing revenue expansion, adversely affecting gross margins and earnings. Furthermore, a recent revenue miss coupled with underwhelming performance in the U.S. market raises concerns about PMI's ability to sustain profitability amid shifting consumer preferences.