The analyst price target for Philip Morris International has been revised slightly downward from $190.20 to $188.00, as analysts cite moderating profit margin and revenue growth expectations. Analysts also note that recent share price weakness may present a buying opportunity.

Analyst Commentary

Analysts continue to weigh both the positive catalysts and lingering concerns for Philip Morris International following its recent earnings update and the subsequent downturn in share price.

Bullish Takeaways

• Bullish analysts view the share price pullback as an opportunity and believe the recent decline presents an attractive entry point for long-term investors.
• There is continued optimism around the better-than-expected growth in Q3 organic sales, along with improved profit margins and earnings per share.
• Growth trends suggest effective execution on strategic initiatives, supporting the valuation case even amid internal adjustments.
• The current market reaction is seen by some professionals as exaggerated and not reflective of the company's overall fundamentals and future prospects.

Bearish Takeaways

• Bearish analysts remain concerned about the guidance cut for operating profit, which introduces uncertainty over near-term earnings momentum.
• A more cautious view takes into account the weaker operating profit outlook for the fourth quarter compared to previous expectations.
• Ongoing dynamics related to ZYN in the U.S. market are seen as a potential risk to both U.S. performance and overall growth trajectories.

What's in the News

• Philip Morris International increased its regular quarterly dividend by 8.9 percent to $1.47 per share, raising the annualized dividend to $5.88 per share (Company Announcement).
• The company provided earnings guidance for full year 2025, expecting diluted EPS of $7.39 to $7.49, organic net revenue growth of 6 to 8 percent, and organic operating income growth of 10 to 11.5 percent. This guidance includes the impact of higher U.S. investments (Company Guidance).
• Philip Morris International presented evidence before the Tobacco Products Scientific Advisory Committee regarding the renewal of modified risk tobacco product status for its IQOS heated tobacco devices and consumables in the U.S. market. The company also highlighted growing adoption of smoke-free products worldwide (Company Announcement).
• A $37 million investment has been announced for the Wilson, North Carolina manufacturing facility to expand operations. This will introduce a new production line for TEREA consumables supporting U.S. launch preparations for the IQOS ILUMA system (Company Announcement).
• Pursuing business expansion, Philip Morris International has made recent large-scale investments in U.S. manufacturing, including expansions in Kentucky and Colorado. These expansions are expected to create nearly 1,000 direct jobs (Company Announcement).

Valuation Changes

• Consensus Analyst Price Target has decreased slightly from $190.20 to $188.00, reflecting a modest shift in sentiment.
• Discount Rate has edged down from 7.79 percent to 7.72 percent.
• Revenue Growth estimates have been revised downward marginally, from 8.15 percent to 8.03 percent.
• Net Profit Margin has declined slightly from 29.34 percent to 29.22 percent.
• Future P/E Ratio projections now stand at 25.10x, compared to 25.65x previously.