Argus Downgrades Philip Morris (PM) to Hold

Argus analyst Taylor Conrad downgraded Philip Morris (NYSE: PM) from Buy to Hold.

The analyst comments "We are lowering our rating on Philip Morris International Inc. (NYSE: PM) to HOLD from BUY due to ongoing product risks for the company. PM manufactures and sells cigarettes and related products, primarily Heated Tobacco Units (HTU), which heat tobacco rather than burn it. The company faces a range of legal and regulatory risks, including smoking bans, restrictions on package advertising, and FDA regulation of both smoke-free and combustible products. Pressured by high taxes, government actions, social changes and health concerns, tobacco usage has been on a declining trend, as has the PM share price. Indeed, the PM shares have underperformed their benchmarks over the past one- and five-year periods. On a technical basis, the shares have been in a bearish pattern of lower highs and lower lows since December 2022. We would consider returning PM to our BUY list on signs of stronger margins, helped by acquisitions, as the company diversifies away from traditional cigarettes. The company has a history of dividend growth, and we like the yield of about 5.8%. For these reasons, our long-term rating remains BUY."

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 $90.31 yesterday.

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