Philip Morris Seeks MRTP Status for ZYN, Reports 14% Sales Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 23 2026
0mins
Should l Buy PM?
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.
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Analyst Views on PM
Wall Street analysts forecast PM stock price to rise
11 Analyst Rating
8 Buy
3 Hold
0 Sell
Moderate Buy
Current: 172.000
Low
175.00
Averages
191.95
High
210.00
Current: 172.000
Low
175.00
Averages
191.95
High
210.00
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.
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HIDDEN WOUNDS AWARDED $50,000 BY PHILIP MORRIS INTERNATIONAL U.S. TO ENHANCE QUICK MENTAL HEALTH SUPPORT FOR VETERANS
- Donation Received: Hidden Wounds has received a $50,000 donation from Philip Morris International.
- Purpose of Donation: The funds will be used to expand rapid mental health stabilization services for veterans.
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- Quarterly Dividend Announcement: Philip Morris has declared a quarterly dividend of $1.47 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability, which is likely to attract more investors seeking reliable income.
- Dividend Yield: The forward yield of 3.28% reflects the company's appeal in the current market environment, potentially increasing investor interest in its stock, especially amid rising interest rates.
- Shareholder Record Date: The dividend will be payable on April 13, with a record date of March 19 and an ex-dividend date also on March 19, providing investors with a clear timeline for their investment decisions.
- Market Reaction Expectations: Although the dividend remains unchanged, the market maintains a cautious stance on Philip Morris's overall valuation, with analysts noting that while the company is performing well, its stock price may already fully reflect its dividend potential.
See More
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- Arista Networks Upgrade: Bay Area Ideas upgraded Arista Networks (ANET) from Hold to Buy, citing improved long-term prospects despite near-term supply constraints, with purchase commitments increasing by 42% quarter-over-quarter, indicating strong demand and enhancing the company's competitive position in the market.
- DraftKings Rating Adjustment: Gary Alexander upgraded DraftKings (DKNG) to Neutral after a more than 30% decline in share price made its valuation more attractive, with the launch of a consolidated 'super app' expected to drive iGaming growth in 2026, although risks still outweigh opportunities.
- Philip Morris Downgrade: Cash Flow Venue downgraded Philip Morris (PM) to Hold, noting that despite leading the smoke-free movement with 41.5% of results from smoke-free products, valuation concerns and India's ban on heated tobacco products limit near-term upside, putting downward pressure on the stock price.
- Marvell Technology Downgrade: Deep Value Investing downgraded Marvell Technology (MRVL) to Hold, expressing concerns that its 20% year-over-year custom silicon/XPU growth guidance appears modest compared to stronger AI leaders, suggesting a challenging competitive landscape that could hinder future growth prospects.
See More
Tobacco Stocks' Appeal Amid Economic Uncertainty
- Stable Cash Flows: Tobacco stocks like British American Tobacco and Philip Morris are favored during recessions due to their stable cigarette demand and strong cash flows, attracting investors seeking high dividend yields.
- Strong Growth in Smoke-Free Products: Both British American Tobacco and Philip Morris have achieved significant growth in smoke-free products, with the former known for brands like Dunhill and the latter for Marlboro, offering dividend yields of 5.62% and 3.46%, respectively, both above the S&P 500's average of 1.11%.
- Future Earnings Expectations: According to Zacks estimates, British American Tobacco's annual sales are expected to rise 7% in FY26 to $36.76 billion, while Philip Morris's sales are projected to grow 8% in FY26 to $47.14 billion, indicating strong growth potential.
- Increased Investor Confidence: Over the past 30 days, earnings per share estimates for both tobacco companies have been revised upward, earning them a Zacks Rank #2 (Buy) and being selected by experts as top stocks expected to gain over 100% in the coming year, reflecting strong market confidence in their future performance.
See More
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- Coca-Cola's Steady Growth: Coca-Cola continues to expand in the global beverage market, successfully increasing sales of bottled water, juices, and sports drinks despite declining soda consumption, with projected EPS growth of 6.6% CAGR from 2025 to 2028.
- Altria's Business Transformation: Altria accelerates its shift towards smoke-free products through the acquisition of e-cigarette leader NJOY, expecting smoke-free revenue to reach at least $5 billion by 2028, which would account for a quarter of its projected sales, demonstrating adaptability to future market trends.
- Dividend King Status: Both Coca-Cola and Altria are Dividend Kings, with Coca-Cola raising dividends for 64 consecutive years at a yield of 2.65%, while Altria has increased dividends 60 times over 56 years, boasting a yield of 6.25%, showcasing strong dividend performance from both companies.
- Valuation and Investment Choice: Coca-Cola's forward P/E ratio stands at 24, while Altria's is lower at 12, making Altria more attractive in the current market environment due to its lower valuation and higher dividend yield, especially in light of its expanding smoke-free business.
See More
HIDDEN WOUNDS AWARDED $50,000 BY PHILIP MORRIS INTERNATIONAL U.S. TO ENHANCE QUICK MENTAL HEALTH SUPPORT FOR VETERANS
- Donation Received: Hidden Wounds has received a $50,000 donation from Philip Morris International.
- Purpose of Donation: The funds will be used to expand rapid mental health stabilization services for veterans.
See More
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- AMD Upgrade: Analyst Oliver Rodzianko upgraded AMD to Buy, highlighting its leadership in the AI-driven compute market, with Q1 FY26 revenue guidance of approximately $9.8 billion, reflecting a 32% year-over-year growth, which is likely to sustain or enhance current market sentiment regarding its medium-term growth prospects.
- PLTR Rating Increase: Danil Sereda upgraded Palantir from Hold to Buy, citing a remarkable 70% year-over-year revenue growth in Q4, and believes that its model-agnostic AI platform presents a unique buying opportunity, particularly with deeper integration into Department of Defense workflows.
- Vistra Downgrade: Blake Winiecki downgraded Vistra to Hold, noting that despite securing long-term nuclear power agreements with AWS and Meta, its current PE ratio of 76x and price-to-book ratio of 21x are significantly above peers, warranting a cautious outlook until earnings growth and cost management improve.
- PM Rating Adjustment: Bela Lakos downgraded Philip Morris from Buy to Hold, as the stock has appreciated 15% in two months, now trading above fair value estimates, leading analysts to conclude that there is limited upside potential from the current price level.
See More
Philip Morris Declares Quarterly Dividend of $1.47
- Quarterly Dividend Announcement: Philip Morris has declared a quarterly dividend of $1.47 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability, which is likely to attract more investors seeking reliable income.
- Dividend Yield: The forward yield of 3.28% reflects the company's appeal in the current market environment, potentially increasing investor interest in its stock, especially amid rising interest rates.
- Shareholder Record Date: The dividend will be payable on April 13, with a record date of March 19 and an ex-dividend date also on March 19, providing investors with a clear timeline for their investment decisions.
- Market Reaction Expectations: Although the dividend remains unchanged, the market maintains a cautious stance on Philip Morris's overall valuation, with analysts noting that while the company is performing well, its stock price may already fully reflect its dividend potential.
See More
