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Philip Morris (PM) Stock Expected to Hold Up Despite Miss

July 18, 2013 1:16 PM EDT Send to a Friend
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Price: $83.15 -1.93%

Rating Summary:
    2 Buy, 9 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 9 | New: 22
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Goldman Sachs today maintained a Conviction Buy on Philip Morris (NYSE: PM) with a price target of $103.00. Analyst Judy E. Hong expects shares to trade lower following Q2 results, but she doesn't see a major sell-off.

"Overall PM operating margins were 43.1% vs. GSe of 44.6% as EEMA and Asia margins both missed our estimate by 200-250 bp. EEMA was likely due to the significant volume and mix weakness in its three core markets (Russia, Ukraine, Turkey), while the impact of negative Japan mix (given volumes fell 10%) and Indonesia inflation were larger drivers than we had modeled," said Hong.

"We expect shares start the day down, but, because PM has previously indicated that 2013 is a back half-loaded year, the keeping of FX-neutral guidance could provide downside support to shares despite the miss," she added.

For an analyst ratings summary and ratings history on Philip Morris (NYSE: PM) click here. For more ratings news on Philip Morris click here.

Shares of Philip Morris closed at $89.71 yesterday.




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