Philip Morris adjusts 2026 earnings forecast to $8.31-$8.46 due to currency headwinds but sees regulatory clarity boosting growth.
Morgan Stanley raised its price target for Philip Morris International Inc. (PM) to $200 from $190, maintaining an Overweight rating. The firm cited confidence in growth drivers Zyn and IQOS, including the upcoming U.S. launch of Zyn Ultra and progress in Japan.
Philip Morris lowered its 2026 adjusted earnings per share forecast to $8.31-$8.46, down from $8.36-$8.51, due to foreign exchange impacts. The new range reflects 10.2%-12.2% growth from 2025 levels, below the $8.41 analysts expected. The company also trimmed Q2 and full-year 2026 estimates by $0.05 per share.
CEO Jacek Olczak said recent U.S. FDA actions to ease enforcement on unauthorized vaping and nicotine products reduce regulatory uncertainty for Zyn, calling it a “net positive” for the category. Currency fluctuations remain a headwind, though other risks like energy prices are manageable.