Philip Morris International (PM, Financial) anticipates a challenging global landscape for the traditional cigarette and heated tobacco unit (HTU) market, with a projected 1% decline in total international industry volume, excluding China and the U.S. However, the company expects a positive trajectory in its own product shipments, forecasting up to a 2% growth driven primarily by a substantial increase of 12% to 14% in smoke-free product volumes.
The company predicts its net revenue will climb between 6% and 8% on an organic basis. Moreover, Philip Morris International foresees organic operating income growth ranging from 10.5% to 12.5%, showcasing the firm's confidence in its strategic direction towards reduced-risk products.
In terms of financial health, the company aims to achieve an operating cash flow exceeding $11 billion, contingent on year-end working capital adjustments. Additionally, Philip Morris plans to allocate approximately $1.5 billion in capital expenditures, which includes further expansion of its ZYN nicotine pouch production capacity in the United States.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for Philip Morris International Inc (PM, Financial) is $154.99 with a high estimate of $180.00 and a low estimate of $102.00. The average target implies an downside of 5.56% from the current price of $164.11. More detailed estimate data can be found on the Philip Morris International Inc (PM) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, Philip Morris International Inc's (PM, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Philip Morris International Inc (PM, Financial) in one year is $125.84, suggesting a downside of 23.32% from the current price of $164.11. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Philip Morris International Inc (PM) Summary page.
