UBS Reiterates Sell Rating on Philip Morris (PM)

UBS analyst Faham Baig reiterated a Sell rating and $85.00 price target on Philip Morris (NYSE: PM)

The analyst commented, "On 14 Mar 2024, the Court of Justice of the European Union (link), ruled that "‘other indirect taxes on excise goods for specific purposes’ covers a supplementary tax applicable to heated tobacco, the amount of which is 80% of the excise applicable to cigarettes, less the amount of excise duty applicable to such heated tobacco"; noting "It is apparent from the order for reference that the supplementary tax at issue seeks to bring the taxation of heated tobacco into line with that of cigarettes. Accordingly, by adapting the tax system for heated tobacco, the specific purpose of that tax is to deter consumers who are dependent on nicotine from giving up cigarettes in favour of the heated tobacco at issue in the main proceedings, since the latter product is also harmful to health." This is a preliminary ruling at the request from the Finance Court Dusseldorf in Germany, following action brought by PMI. We understand the final ruling will be made by the Court in Germany and could be challenged. See inside for details."

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 $93.68 yesterday.

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