Jefferies Sees Limited Re-Rating Upside for Philip Morris (PM) in 2026

Philip Morris International Inc. (NYSE:PM) is included among the 15 Best S&P 500 Dividend Stocks to Buy in 2026.

On January 20, Jefferies analyst Edward Mundy moved Philip Morris International Inc. (NYSE:PM) to Hold from Buy and cut the firm’s price target to $180 from $220. In his note, he said Jefferies sees limited room for the stock to be re-rated in 2026. The analyst also pointed to tougher competition. He noted that British American Tobacco (BTI) is pushing category growth in US nicotine pouches, while Japan Tobacco is “competing more assertively” in heated tobacco. Because of that backdrop, Jefferies believes there is downside risk to consensus estimates for Philip Morris.

In a separate January 15 press release, Philip Morris International said it remains committed to investing in the US. The company stated it has invested more than $20 billion in America since 2022, with most of that tied to acquiring and expanding US manufacturing capabilities, commercial rights and infrastructure, and supporting US jobs.

The release noted that around $19 billion of these investments came in 2022, including the Swedish Match acquisition. PMI highlighted that Swedish Match generates the large majority of its revenues in the United States, and described the deal as a major part of its US investment strategy.

Since that acquisition, PMI US has invested more than $1 billion into American manufacturing, operational capabilities, and people costs through September 30, 2025. The company also pointed to infrastructure investments in Colorado, Kentucky, and North Carolina. PMI said these projects are expected to create more than 1,000 direct jobs and 1,500 indirect jobs, with an ongoing annual economic impact estimated at over $800 million.

Philip Morris International Inc. (NYSE:PM) is a global consumer goods company focused on building a smoke-free future. Over time, it has also been working to evolve its portfolio beyond tobacco and nicotine products.

While we acknowledge the potential of PM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.