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Investing.com - Stifel has maintained its Hold rating and $192.00 price target on Philip Morris (NYSE:PM) following the tobacco giant’s second-quarter earnings report. According to InvestingPro data, the stock appears to be trading above its Fair Value, with a market capitalization of $257.25 billion.
Philip Morris International delivered robust second-quarter results, posting over 18% EPS growth and nearly 15% operating profit growth on a constant currency basis, alongside nearly 7% organic sales growth that included over 1% volume growth.
The company reported earnings per share of $1.91, exceeding Stifel’s estimate by $0.08, despite foreign exchange providing $0.04 less of a tailwind than anticipated in both company guidance and analyst projections.
Following these strong results, Philip Morris 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 renewed demand-generating investments, and continued improvement in the balance sheet as it approaches 2x leverage.
In other recent news, Philip Morris International reported strong second-quarter results, with over 18% earnings per share growth and nearly 15% operating profit growth on a constant currency basis. The company’s organic sales grew by nearly 7%, including more than 1% volume growth. In response to these results, Stifel maintained a Buy rating and a $186 price target for the company. Goldman Sachs also raised its price target for Philip Morris to $200 from $190, maintaining a Conviction Buy rating, citing potential upside surprises in earnings driven by momentum behind IQOS and easing supply constraints around ZYN. Additionally, Citi increased its price target to $200 from $188, expecting impressive performance across Philip Morris’s businesses. UBS raised its price target to $181 from $170, reflecting updated earnings per share estimates and the benefit from U.S. dollar weakness. Meanwhile, the FDA’s authorization for Juul e-cigarettes to remain on the U.S. market impacted tobacco stocks, with Philip Morris showing mixed movements.
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