Citi’s Simon Hales Reiterates Bullish View on Philip Morris (PM) Growth Outlook

On February 10, Citi expert Simon Hales raised his terms proposal connected Philip Morris International Inc. (NYSE:PM) to $210 from $200. The expert reiterated a Buy standing connected the stock. The analyst’s update reflects continued assurance successful the company’s maturation outlook, peculiarly arsenic its smoke-free products summation momentum.

During the Q4 2025 net call, Group CEO Jacek Olczak said 2025 marked different beardown twelvemonth for PMI. He pointed to the company’s advancement successful expanding its smoke-free concern and strengthening its wide position. Smoke-free merchandise volumes accrued by 12.8% during the year, portion integrated smoke-free gross nett roseate adjacent faster, up 18.7%. This showed that the conception was not lone increasing but besides becoming much profitable.

Olczak said IQOS remained the company’s biggest maturation driver. Shipments and adjusted IMS some accrued by astir 11%, and PMI expanded its smoke-free footprint to 106 markets. This dependable enlargement continues to propulsion smoke-free products deeper into its planetary business. He besides highlighted the company’s multi-category strategy. ZYN, excluding the Nordics, and VEEV some much than doubled their shipment volumes successful planetary markets. Olczak said ZYN was gaining meaningful traction extracurricular its accepted regions, portion VEEV had go the fastest-growing closed pod marque globally.

Financially, the institution reached an important milestone. PMI’s full nett gross surpassed $40 cardinal successful 2025. Smoke-free products accounted for 41.5% of that total, oregon astir $17 billion. At the aforesaid time, the company’s adjusted operating borderline recovered to supra 40%, showing improved ratio and profitability. Olczak besides noted that 27 markets had reached a cardinal tipping point, wherever much than fractional of full nett gross present comes from smoke-free products. This reflects the company’s ongoing displacement distant from accepted cigarettes toward reduced-risk alternatives.

He added that PMI reaffirmed its three-year CAGR targets for integrated operating income and currency-neutral EPS. The institution is besides moving to fortify its equilibrium sheet, with plans to bring its leverage ratio down to astir 2x by the extremity of 2026.

Philip Morris International Inc. (NYSE:PM) is simply a planetary baccy company. Its portfolio includes accepted cigarettes arsenic good arsenic a increasing scope of smoke-free products. The smoke-free conception besides includes wellness and healthcare products, on with user accessories specified arsenic lighters and matches.