Nomura Securities Maintains a 'Reduce' on Philip Morris (PM); Cutting Estimates
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Price: $190.39 +0.78%
Rating Summary:
17 Buy, 11 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
17 Buy, 11 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Reduce' on Philip Morris (NYSE: PM) price target of $73.00.
Analyst, David Hayes, said, "We are lowering our 2012E/2013E EPS from $5.24/$5.77 to $5.23/$5.66 vs. the Street at $5.29/$5.87. While we update our full-year volume estimate to reflect the extremely strong growth in 1Q12, the key driver of this projection is an assumed continuation of strong Indonesian growth, as we expect to see a slowdown in other key markets (eg, South Korea, Japan, Philippines and Mexico) throughout the year. Although Asia is a growth engine for PMI, with the threat of increased regulation, in addition to potential volatility, we feel these risks have not been priced in. The stock’s core 2013E P/E (ex associates/normalized gearing) is trading at 15.8x, a c.30% premium to peers.
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 $86.15 yesterday.
Analyst, David Hayes, said, "We are lowering our 2012E/2013E EPS from $5.24/$5.77 to $5.23/$5.66 vs. the Street at $5.29/$5.87. While we update our full-year volume estimate to reflect the extremely strong growth in 1Q12, the key driver of this projection is an assumed continuation of strong Indonesian growth, as we expect to see a slowdown in other key markets (eg, South Korea, Japan, Philippines and Mexico) throughout the year. Although Asia is a growth engine for PMI, with the threat of increased regulation, in addition to potential volatility, we feel these risks have not been priced in. The stock’s core 2013E P/E (ex associates/normalized gearing) is trading at 15.8x, a c.30% premium to peers.
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 $86.15 yesterday.
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