With a market cap of around $271 billion, Philip Morris International Inc. (PM) is a global tobacco company focused on transitioning to a smoke-free future. Its portfolio includes traditional cigarettes as well as smoke-free alternatives like IQOS heat-not-burn systems and ZYN oral nicotine pouches, along with wellness and healthcare products.
Shares of the Stamford, Connecticut-based company have significantly outperformed the broader market over the past 52 weeks. PM has surged 78.1% over this time frame, while the broader S&P 500 Index ($SPX) has gained 8.2%. On a YTD basis, shares of Philip Morris are up 44.3%, compared to SPX’s 4.7% decrease.
Narrowing the focus, the tobacco company has also outpaced the Consumer Staples Select Sector SPDR Fund’s (XLP) 6.2% rise over the past 52 weeks and 3.7% return on a YTD basis.
Shares of Philip Morris rose 2.4% on Apr. 23 after it reported robust Q1 2025 results, with adjusted EPS of $1.69, beating the consensus estimate. Net revenues rose 5.8% to $9.3 billion, also topping the consensus estimate, driven by pricing gains and higher smoke-free product volumes. Smoke-free product revenues jumped 15%, making up 42% of total revenues, with strong momentum in IQOS and ZYN. The company raised its full-year adjusted EPS guidance to $7.36 - $7.49.
For the fiscal year, ending in December 2025, analysts expect PM’s EPS to grow 13.7% year-over-year to $7.47. The company’s earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 12 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on eight “Strong Buy” ratings, one “Moderate Buy,” and three “Holds.”
This configuration is slightly more bullish than three months ago, with seven “Strong Buy” ratings on the stock.
On Apr. 8, UBS analyst Faham Baig raised the price target for Philip Morris to $130 while maintaining a “Sell” rating.
As of writing, PM is trading below the mean price target of $182.45. The Street-high price target of $205 implies a potential upside of 17.6% from the current price.
