Philip Morris (PM) is on the move.
Up about $1.85 on the day on a volume spike to 6.6 million shares, as compared to daily average volume of 4.8 million shares, the stock saw another upgrade.
Earlier today, Goldman Sachs analyst Bonnie Herzog upgraded the PM stock to a buy rating, raising her price target to $120. “We performed an in-depth analysis of the U.S. nicotine market (which increases Philip Morris’s total addressable market by 60%) and, in our base-case scenario, we believe Philip Morris can comfortably reach a 10% share of the U.S. combustible and heat-not-burn market by 2030,” she said, as quoted by Barron’s.
“Ultimately, we see a long runway of accelerating revenue and profit growth ahead fueled by the tremendous compounding effect of IQOS’s razor/razor blade model.”
Jefferies’ analyst Owen Bennett is just as bullish.
He also upgraded the PM stock to a buy, with a price target of $118 from $86, noting PM is “leading the shift over to the tobacco model of the future.”
Technically, if PM can break above historical resistance dating back to early 2022 around $106.70, PM could break to higher highs. At the moment, it’s consolidating at $102.