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Philip Morris on the Street: Analyst Recommendations

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Price target

As of April 11, 2017, Philip Morris International (PM) was trading at $113.42, and this stock price might have already factored in the estimates we discussed in the previous parts of this series. In this final part of the series, we’ll look at analysts’ estimated target prices for PM stock over the next 12 months as well as the recommendations.

PM’s strong 4Q16 sales and the rise in iQOS sales appear to be compelling analysts to raise their price target for next 12-months. As of April 11, 2017, analysts are expecting the company’s stock price to reach $114.86 in next 12-months, which represents a return potential of 1.3%.

The target prices and return potentials of Philip Morris’s peers for the next 12 months are as follows:

  • Altria Group (MO): $73.09, with a return potential of 1.4%
  • Reynolds American (RAI): $59.26, with a return potential of -7.36%
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Analyst recommendations

Of the 17 analysts covering Philip Morris, 47.1% are recommending a “buy,” while 47.1% are recommending “hold,” and 5.9% are recommending “sell.”

Remember, Philip Morris stock price moves in tandem with analysts’ estimates. When analysts raise their price targets, the stock price will also rise, and vice versa. But even though Philip Morris’s share price is lower than its target price, it doesn’t mean the stock is an automatic “buy.” Before investing, you should carefully analyze the various metrics we’ve covered in this series.

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