Jefferies has initiated coverage of Philip Morris International (PMI) with a 'buy' recommendation and a target price of $220, even hough it believes the US cigarette maker's stock is trading at a premium to its tobacco peers.
Analysts believe that the group will continue to lead growth in heated tobacco and oral nicotine pouches, which is likely to generate sustainable EBIT expansion at the high end of the range in the medium term.
Jefferies says that PMI does not appear expensive compared to blue chips in the food and HPC sectors, while offering superior revenue and earnings growth, as well as high cash returns for shareholders.
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Philip Morris International, Inc. is one of the world leading producers of cigarettes and tobacco products.
In 2024, the group sold 616.8 billion cigarettes (under the brand names Marlboro, Parliament, Chesterfield, L&M, Bond Street, Philip Morris, Next, Lark, Sampoerna A, Dji Sam Soe, etc.) and 139.7 billion heated tobacco (IQOS, HEETS, Marlboro Dimensions, Marlboro HeatSticks, Parliament HeatSticks et Fiit and Miix brands).
At the end of 2024, Philip Morris International, Inc. had 51 manufacturing sites worldwide.
Net sales (excluding wellness and healthcare products) are distributed geographically as follows: Americas (9.7%), South and Southeast Asia/CIS/Middle East/Africa (42.4%), Europe (37%), East Asia and Australia (10.9%).
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