Philip Morris price target raised to $135 from $118 at Deutsche Bank

Deutsche Bank analyst Damian McNeela raised the firm’s price target on Philip Morris to $135 from $118 and keeps a Buy rating on the shares. The company is currently expanding capacity to support the growth of its oral nicotine pouch brand, Zyn and preparing to launch its market-leading Iqos Iluma product in the U.S. in the second half of next year, the analyst tells investors in a research note. The firm thinks Zyn and Iqos are complementary products that cater to different preferences within the smoke-free category. As such, it believes Philip Morris is well placed to drive the transition towards a smoke-free future in the U.S.. The company does not have a combustibles business in the U.S. and as such will not be cannibalizing any pre-existing profits, adds Deutsche Bank.