2024-05-21 11:19:12 ET
Summary
- Zyn, Philip Morris International's nicotine pouch product, has demonstrated exceptional growth, particularly among Gen Z, and holds a significant market share in the US.
- Despite Zyn's success, Philip Morris' stock has underperformed, creating an opportunity for investors as the market undervalues Zyn's potential.
- Zyn's strong performance is reflected in Philip Morris' Q1 2024 earnings report, with robust volume growth and exceeding revenue expectations.
Investment Thesis
I believe Philip Morris International ( PM ) is a compelling buy due to the continued transformative potential of Zyn, its nicotine pouch product.
I believe Zyn has demonstrated exceptional growth, particularly in the US, where its volumes surged by 80% in Q1 2024 alone. This impressive performance is attributed (in part) to its strong appeal among Gen Z, who see it as a trendy and more socially acceptable alternative to traditional smoking. The product's integration into Gen Z culture, combined with its dominance of significant market share at 74.3% in the US nicotine pouch segment, underscores its potential to drive substantial growth for Philip Morris....
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Philip Morris: Gen Z Likes Zyn