Tobacco sector investors eye the crucial U.S. election wildcard (NYSE:MO)
Written by Emily J. Thompson, Senior Investment Analyst
Source: SeekingAlpha
Impact of U.S. Elections on Tobacco Sector: The outcome of the U.S. elections could significantly influence tobacco legislation, with a Republican win potentially benefiting the sector by reducing the likelihood of a menthol cigarette ban and increasing oversight on illegal products, while a Democratic win may lead to stricter regulations.
Market Reactions and Analyst Insights: Analysts are optimistic about companies like Philip Morris International despite challenges from illicit vaping products, citing strong pricing power and regulatory progress, as well as increased shareholder returns bolstered by strategic financial moves.
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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: 177.890
Low
158.00
Averages
181.63
High
200.00
Current: 177.890
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.
Philip Morris Factory Struck by Russian Missiles
- Factory Attack: The Kyiv Post reported that Russian missiles struck Philip Morris's cigarette plant in Kharkiv, posing security risks that further jeopardize the company's production capabilities in Ukraine.
- Operations Suspended: Since Russia's full-scale invasion in February 2022, Philip Morris has suspended operations at the Kharkiv facility and is actively seeking alternative production sites within Ukraine, highlighting the company's focus on safety and continuity.
- Brand Impact: The facility previously produced globally recognized brands such as Marlboro, Parliament, and L&M, and its closure could disrupt the supply chain for these brands, potentially affecting the company's market share.
- Future Outlook: Despite the challenges, Philip Morris is exploring new production bases, indicating a long-term commitment to the Ukrainian market, which may allow for a future resumption of production to meet market demands.
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Altria Shares Decline Post-Earnings as It Falls Behind in the Smokeless Tobacco Market.
- Stock Performance: Altria Group's stock experienced a decline on Thursday.
- Earnings Report: The company reported quarterly earnings that fell short of expectations.
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