Philip Morris (PM) Stock Forecast & Price Target

Philip Morris International (PMI) is expected to experience organic revenue growth in the range of 6% to 8% over the next two years, driven by its continuous market share gains. The company's recent acquisition of Swedish Match enhances its portfolio by diversifying into non-smokable products while establishing a foothold in the U.S. market for heated tobacco products. Additionally, the accelerated growth of the smoke-free category and the potential for increased marketing efforts suggest a favorable environment for PMI to further solidify its market position and expand its customer base.

Philip Morris International's recent reports indicate a contraction in smoke-free revenue and profit contributions, which raises concerns about the company's growth sustainability. The anticipated slowdown in revenue growth, particularly linked to nicotine pouches, is expected to negatively impact gross margins and overall earnings. Additionally, a revenue miss coupled with weaker-than-expected performance in the U.S. market suggests ongoing challenges for the company in achieving its financial targets moving forward.