UBS upgraded Philip Morris to Buy from Neutral with a price target of $116, up from $106. The analyst expects an acceleration of heated tobacco products shipment growth in mature markets due to Iluma and likes the "strong cash flow" in the company’s combustible business. Despite Iluma’s current margin dilution, new launches provide an immediate volume and share tailwind, with scale benefits to come online over the second half of 2023, ahead of 2024’s launches of Bonds for the low-end markets and U.S. IQOS, the analyst tells investors in a research note. The firm believes the launces will cement Philip Morris’ status as "best-in-class" in tobacco.
Published first on TheFly
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