Bank of America Securities analyst Lisa Lewandowski reiterated a Buy rating on Philip Morris (PM – Research Report) yesterday and set a price target of $182.00.
Lisa Lewandowski’s rating is based on the impressive financial performance of Philip Morris, particularly in the first quarter of 2025. The company experienced significant growth in organic net sales, gross profit, and operating income on a currency-neutral basis, driven by a substantial increase in smoke-free product sales and profit margins. This strong performance contributed to an overall improvement in consolidated gross margins and operating margins.
Furthermore, Philip Morris has updated its foreign exchange impact on earnings per share (EPS), resulting in a positive adjustment. The company’s management has also provided an optimistic outlook for EPS growth in the coming years, supported by increased volumes of ZYN and IQOS products. The decision to raise the price objective to $182 reflects confidence in the company’s strategic shift towards higher-margin, less harmful alternatives, which is expected to sustain its growth trajectory. The valuation of Philip Morris at a premium to its historical average is justified by the robust operational strength and future prospects.
In another report released on April 15, Citi also maintained a Buy rating on the stock with a $180.00 price target.
Based on the recent corporate insider activity of 60 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PM in relation to earlier this year.