UPDATE: JPMorgan Downgrades Philip Morris (PM) to Neutral

JPMorgan analyst Jared Dinges downgraded Philip Morris (NYSE: PM) from Overweight to Neutral with a price target of $110.00 (from $130.00).

The analyst comments "The global leader in both cigarettes and Heated Tobacco Products, PMI is set to cash in on nearly $10bn of cumulative NGP investments. However, the recent tensions in Ukraine has clouded PMI’s ability to achieve its near and medium term NGP targets, with Russia and Ukraine accounting for 23% of its HTU volume. Although the MT growth algorithm remains robust (FY21-24e organic sales/EBIT/EPS CAGR of +6%/+11%/+13%) driven by the highly attractive economics of HTP and an un-stretched balance sheet provides buyback support, external factors will prove too difficult to overcome, in our view. We model FY22e/23e HTU volumes of 108bn/127bn, below PMI’s 2022 guide of 113-118bn and 2023 target of 140bn. We rate the stock Neutral."

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 $99.80 yesterday.

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