Philip Morris stock price target maintained at $186 by Stifel after strong Q2

Investing.com - Philip Morris International (NYSE:PM) received a reiterated Buy rating and $186.00 price target from Stifel on Wednesday, following the tobacco giant’s strong second-quarter performance. According to InvestingPro data, three analysts have recently revised their earnings estimates upward, with price targets ranging from $143.45 to $225.

The company reported over 18% earnings per share (EPS) growth and nearly 15% operating profit growth on a constant currency basis for the quarter, alongside nearly 7% organic sales growth that included over 1% volume growth. The $257.25 billion market cap company maintains impressive gross profit margins of 65.68%, though InvestingPro analysis suggests the stock is trading above its Fair Value.

Philip Morris posted an EPS of $1.91, exceeding Stifel’s estimate by $0.08, despite foreign exchange being $0.04 less of a tailwind compared to company guidance and analyst expectations.

The tobacco company has raised its 2025 profit and EPS growth outlook, now expecting EPS growth of 12.5% at the mid-point on a constant currency basis, which represents a one percentage point increase from previous guidance.

Stifel identified several upcoming catalysts for Philip Morris, including the introduction of IQOS ILUMA in the U.S. following FDA authorization, acceleration in ZYN consumption benefiting from improved supply, and continued improvement in the balance sheet as it tracks toward 2x leverage.

In other recent news, Philip Morris has seen several updates from major investment firms regarding its stock price targets and ratings. Goldman Sachs increased its price target for Philip Morris to $200, maintaining a Conviction Buy rating, citing potential upside surprises in upcoming earnings due to strong momentum in its IQOS product and easing supply constraints around ZYN. Citi also raised its price target to $200, with expectations of impressive second-quarter performance, particularly in ZYN volumes. UBS adjusted its price target to $181, reflecting updated earnings per share estimates and the favorable impact of a weaker U.S. dollar on the company’s margins. Meanwhile, Jefferies initiated coverage with a Buy rating and set a price target of $220, highlighting Philip Morris’s leadership in the heated tobacco and oral nicotine segments as a driver for sustainable growth. These developments come as the FDA authorized Juul Labs’ e-cigarettes to remain on the U.S. market, affecting tobacco stocks, including Philip Morris.

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