Philip Morris Seeks MRTP Status for ZYN, Reports 14% Sales Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: seekingalpha
- MRTP Application: Philip Morris has submitted a request to the FDA to classify its smokeless tobacco pouch ZYN as a Modified Risk Tobacco Product (MRTP), which, if approved, would allow advertising it as a lower-risk alternative, encouraging smokers to switch to nicotine pouches.
- Scientific Support: The FDA stated that evidence suggests the proposed modified risk claim is scientifically accurate, noting that current nicotine pouch use among U.S. adults and youth is relatively low, primarily among those who have recently quit other tobacco products.
- Significant Sales Growth: In 2024, Philip Morris reported a 14% increase in sales of smoke-free products, exceeding $15 billion, with gross margins reportedly six times higher than those of cigarette sales, highlighting the company's strong performance in the smokeless market.
- Optimistic Financial Outlook: The company's latest quarterly results showed record gross profit from smoke-free products, leading to an increase in its adjusted gross profit outlook for FY25, further solidifying its market position in the tobacco industry.
Analyst Views on PM
Wall Street analysts forecast PM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PM is 181.63 USD with a low forecast of 158.00 USD and a high forecast of 200.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
8 Buy
1 Hold
0 Sell
Strong Buy
Current: 170.050
Low
158.00
Averages
181.63
High
200.00
Current: 170.050
Low
158.00
Averages
181.63
High
200.00
About PM
Philip Morris International Inc. is an international tobacco company. The Company’s product portfolio primarily consists of cigarettes and smoke-free products. Its smoke-free business (SFB) also includes wellness and healthcare products, as well as consumer accessories, such as lighters and matches. The Company’s segments include Europe Region; South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa Region (SSEA, CIS & MEA); East Asia, Australia & PMI Global Travel Retail (EA, AU & PMI GTR), and Americas Region. The Company's brands include Marlboro, HEETS, IQOS, IQOS ILUMA, TEREA, VEEV and ZYN. Its IQOS smoke-free product brand portfolio includes heated tobacco and nicotine-containing vapor products. Its international cigarette brands are Chesterfield, L&M, and Philip Morris. It also owns a number of local cigarette brands, such as Dji Sam Soe and Sampoerna A in Indonesia, and Fortune and Jackpot in the Philippines.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
