Philip Morris International (NYSE:PM) shares moved upward in price Thursday following an upgrade by JPMorgan to overweight from neutral. The firm cited the growth potential of Philip Morris’ heated tobacco technology known as IQOS Iluma.
According to JPM analyst Jared Dinges, Philip Morris' IQOS ILUMA product has increased heated tobacco share in initial launch markets, despite dealing with "severe" supply-chain issues.
Analysts expect this to ease in the second half of calendar 2023, allowing earnings growth to accelerate into 2024, and remain optimistic about the Smokefree business in the United States.
JPMorgan hikes the price target on PM by 22% to $116.
Shares in the tobacco giant advanced $3.31, or 3.5%, early Thursday to $98.03.
