Philip Morris named New Top Pick at Morgan Stanley

Morgan Stanley analyst Pamela Kaufman keeps an Overweight rating and $118 price target on Philip Morris while naming the stock the firm’s New Top Pick. The firm is positive on the company’s accelerating share of heated tobacco units, or HTU, market from the IQOS ILUMA rollout, along with a rapid Zyn growth in the U.S. Morgan Stanley adds that it seen an opportunity for EBIT margin expansion Philip Morris while noting that the stock is trading at a “compelling valuation” of 14.5-times next-twelve-month’s expected earnings – 14% below its 10-year average of 16.8-times.