Citi analyst Simon Hales has increased the price target for Philip Morris (PM) to $180 from $163, maintaining a Buy rating on the stock. This optimism stems from expectations of continued strong performance in the first quarter, driven by widespread volume growth, favorable product mix leverage, and improved earnings reports.
Despite a forecasted slowdown in U.S. Zyn volume growth to 34% in Q1, attributed to production capacity limitations, Philip Morris is expected to maintain its fiscal year guidance. While Citi remains bullish on Philip Morris, it also perceives significant potential in British American Tobacco (BTI, Financial) following its recent market gains.
