Philip Morris Upgraded To Buy From Neutral At UBS

Image result for Philip Morris

UBS analyst Robert Rampton upgraded Philip Morris (PM) to Buy and raised his price target for the shares to $101 from $86. The stock closed yesterday down 11c to $86.51.

The company's valuation hinges on its heated tobacco proposition, iQOS, Rampton tells investors in a research note titled "When death and taxes become less certain; upgrade to Buy." And he expects iQOS net revenue to grow from $4B in 2018 to $10.6B by 2021. Net of cannibalization, this translates to 8% annual organic revenue growth through 2021, or "well ahead" of Philip Morris' large European and U.S. peers, says Rampton.

"Easy comparisons and a benign tax environment" for 2019 in key markets are also part of the analyst's upgrade to Buy. 

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.