Stifel Rates Philip Morris (PM) as a 'Buy' Buoyed By Smoke-Free Strategy

Philip Morris International Inc. (NYSE:PM) is one of the 12 best consumer goods stocks billionaires are quietly buying. On June 30, analysts at Stifel reiterated a ‘Buy’ rating on the stock and a $186 price target. The bullish stance comes as the stock has registered an impressive 46% year-to-date gain while maintaining an industry-leading gross profit margin of 65.68%.

Analysts at Stifel expect an increased focus on the European market to contribute approximately one-third of the company’s smoke-free growth through 2026. They also expect the company to benefit from the momentum of IQOS and the development of a multi-category strategy, including VEEV e-vapor and ZYN pouches.

Stifel maintains a positive bias towards Philip Morris due to its multi-category approach, which focuses on smoke-free products. It expects the strategy to allow the company to capture and drive incremental consumer shifts beyond heated tobacco.

Philip Morris International Inc. (NYSE:PM) is a leading international tobacco company that is transitioning to a smoke-free future. While it still produces and sells cigarettes, PMI is heavily investing in and promoting smoke-free alternatives like heated tobacco, e-vapor, and oral smokeless products.

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Disclosure: None. This article is originally published at Insider Monkey.