Nomura Securities Maintains a 'Reduce' on Philip Morris (PM); Cuts FY12 Guidance at Investor Day

June 22, 2012 9:02 AM EDT Send to a Friend
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Price: $85.33 -0.29%

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Nomura Securities maintains a 'Reduce' on Philip Morris (NYSE: PM) price target of $73.00.

Analyst, David Hayes, said, "The company took the opportunity to update FY12 earnings guidance for recent FX moves. A cut of 10 cents takes the range to $5.10-$5.20 (LY 4.85). NE currently at $5.25. This should not be a surprise to the market. While Asia and EMEA contribution YTD is ahead of expectations, the EU region performance remains tough, with a further step down in trends in Southern Europe in 2Q. PMI provided a rich level of data and detail on the performance and strategy and developing options for the company. However, the company does hold a premium valuation (15.5x 2013E PE and 11.1x EV/EBITDA (13E). For now the 34% reliance on EU for group profit, and the risks of Asian coming off the boil for a period, make us wary."

For an analyst ratings summary and ratings history on Philip Morris click here. For more ratings news on Philip Morris click here.

Shares of Philip Morris closed at $85.60 yesterday.




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