2024-05-09 16:00:00 ET
Summary
- PM remains a compelling buy for investors looking to buy the best of breed tobacco stocks, with its Smoke-Free approaches already accretive to its top/ bottom-lines and long-term growth opportunities.
- As a result, we can understand why PM continues to be awarded with the premium valuations over its peers and sector medians.
- Despite so, it continues to offer a good balance of capital appreciation and dividend income prospects, with Seeking Alpha Quant still rating its dividend safety at B+.
- Even so, readers may want to pay attention to potential risks from Zyn's growing sales, with the increased underage consumption of nicotine pouches potentially triggering headwinds mirroring that of Juul.
- This is on top of the fact that the US FDA has yet to authorize the product's Premarket Tobacco Product Applications, with only four oral tobacco products receiving the necessary authorization.
We previously covered Philip Morris ( PM ) in February 2024, discussing its bright prospects in the US moving forward, assuming a successful IQOS 3 launch in Q2'24 and IQOS ILUMA in 2025....
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Philip Morris: Big Nicotine Winner Rarely Comes Cheap