BTAFF - Philip Morris: Don't Rush Into Buying The Overdone Rally (Rating Downgrade)
2024-05-19 08:30:00 ET
Summary
- Philip Morris International Inc. investors have outperformed the market recently.
- I urged PM investors to buy as the market was still pessimistic.
- Despite regulatory risks, PM is well-positioned to navigate the shift toward a smokeless future and offers a robust forward dividend yield.
- While PM's valuation isn't aggressive, the recent surge seems overdone.
- Investors are encouraged to allow a welcome pullback before returning to buy more shares.
Philip Morris Stock Outperformed
Philip Morris International Inc. ( PM ) investors have benefited from an upward re-rating in the consumer staples ( XLP ) sector, which also lifted its leading tobacco peers such as British American Tobacco ( BTI ) and Altria Group ( MO ). PM's relative outperformance against the S&P 500 ( SPX ) ( SPY ) since my previous update in mid-March 2024 suggests a reallocation was underway. I reiterated my Buy rating on PM , arguing why its relative premium against its peers is justified....
Philip Morris: Don't Rush Into Buying The Overdone Rally (Rating Downgrade)