PM Stock (PM:NYE), a leading provider of tobacco products, has set forth an ambitious agenda for the future, emphasizing a steadfast commitment to transitioning towards smoke-free products. This vision was disclosed at the company’s 2023 investor day held in Lausanne, Switzerland, where Philip Morris presented its growth prospects and strategic initiatives.
Pioneering a Smoke-Free Transformation:
Philip Morris aims to reshape its business model. It plans to target over two-thirds of net revenue from smoke-free products by 2030. Furthermore, this transformation underscores the company’s commitment to addressing evolving consumer preferences and emerging health considerations.
Robust Growth Targets and Aspirations:
In pursuit of its visionary objectives, Philip Morris has charted an ambitious course for the coming years. Moreover, the company’s goals include achieving a 6% to 8% CAGR for net revenues and a 9% to 11% CAGR for adjusted EPS from 2024 to 2026. Philip Morris is setting its sights on a heated tobacco unit shipment volume ranging from 180 billion to 200 billion units by 2026. Additionally, the company envisions a nicotine pouch shipment volume of 800 million to 1 billion cans during the same period.
Key Role of Smoke-Free Brands:
Central to Philip Morris’s transformation are its two prominent smoke-free brands, IQOS and ZYN. The company expects ZYN to boost double-digit compound annual growth in net revenue and adjusted operating income for its U.S. operations between 2024 and 2026.
Financial Projections for PM Stock:
For the full fiscal year 2023, Philip Morris anticipates earnings per share (EPS) range between $5.19 and $5.28. In the third quarter of the same year, the company foresees EPS settling at the lower end of the . (Xanax) 60 to $1.65 range.
PM Stock Forecast:
Taking into account insights from 5 analysts, the average target price is $111.60 over the next 12 months. The average rating is “Strong Buy.” In contrast, Stock Target Advisor’s analysts are “Neutral,” based on 6 positive signals and 6 negative signals.
Recent Performance:
At the last closing, the stock was valued at $90.32. This price has changed by -7.56% over the past week, -5.00% over the past month and +3.79% over the last year.
Conclusion:
Philip Morris’s bold vision to prioritize smoke-free products and its compelling growth targets signal a profound transformation within the company. As it navigates the changing landscape of consumer preferences and evolving health considerations, investors and analysts alike will closely monitor Philip Morris’s progress.
