With a market cap of $253.7 billion, Philip Morris International Inc. (PM) is a global tobacco company focused on delivering a smoke-free future. Its product portfolio includes traditional cigarettes, smoke-free alternatives like IQOS and ZYN, and expanding offerings in wellness and healthcare.
Shares of the Stamford, Connecticut-based company have outperformed the broader market over the past 52 weeks. PM stock has surged 38.3% over this time frame, while the broader S&P 500 Index ($SPX) has gained 18.4%. Moreover, shares of Philip Morris are up 35.4% on a YTD basis, compared to SPX’s 7.6% increase.
Narrowing the focus, the tobacco giant stock has also outpaced the Consumer Staples Select Sector SPDR Fund’s (XLP) 1.6% rise over the past 52 weeks.
Despite reporting a better-than-expected Q2 2025 adjusted EPS of $1.91, shares of Philip Morris tumbled 8.4% on Jul. 22. Total sales rose 7.1% to $10.1 billion and ZYN shipments came in at 190 million cans, both missing analysts’ estimates.
For the fiscal year ending in December 2025, analysts expect PM’s adjusted EPS to grow 14.3% year-over-year to $7.51. The company’s earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 14 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on nine “Strong Buy” ratings, two “Moderate Buys,” and three “Holds.”
On Jul. 14, UBS maintained its “Neutral” rating on Philip Morris but raised its price target to $181, citing strong smoke-free margin growth driven by IQOS and ZYN, with robust U.S. volume projections and revised earnings estimates through 2027.
As of writing, the stock is trading below the mean price target of $193.38. The Street-high price target of $220 implies a potential upside of nearly 35% from the current price.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
