PM - Philip Morris upgraded at JPMorgan citing growth potential

2023-03-30 05:42:08 ET

• JPMorgan upgrades Philip Morris International ( NYSE: PM ) from neutral to overweight, making it the broker's top tobacco sector pick.
• According to JPM analyst Jared Dinges, Philip Morris' IQOS ILUMA product has increased heated tobacco share in initial launch markets, despite dealing with "severe" supply-chain issues.
• Analyst expect this to ease in 2H23, allowing earnings growth to accelerate into 2024, and remain optimistic about the Smokefree business in the United States.
• JPMorgan hikes the price target on PM by 22% to $116.
• Sector's top pick at JPMorgan, Imperial Brands ( OTCQX:IMBBY ) is also overweight, and British American Tobacco ( BTI ) is neutral.
• Shares of Philip Morris ( PM ) up 1.70% in premarket hours on Thursday.
• " Combined with PM's excellent forward guidance and tailwinds from the Swedish Match acquisition, we recommend investors to take advantage of this weakness to dollar cost average accordingly ," says SA contributor Juxtaposed Ideas.

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