Tobacco giant Philip Morris International Inc.
Goldman Sachs analyst Bonnie Herzog expects the Marlboro parent company to report strong results for its fiscal third quarter on Oct. 22.
Herzog reiterated a Buy rating and raised the price target from $126 to $140.
The Philip Morris International Thesis: The cigarette producer is likely to "comfortably reach" a 10% share of the U.S. combustible and heat-not-burn market by around 2030, Herzog wrote in a note.
The analyst listed Philip Morris's near-term catalysts as:
- iQOS momentum
- Easing ZYN supply constraints
- More favorable FX trends
- Volume returning in key European markets as a result of the EU flavor ban
- iQOS entry into the U.S. market
- ILUMA momentum
- New ZYN capacity
- Taiwan potentially opening
PM Price Action: Shares of Philip Morris had risen by 0.21% to $121.47 at the time of publication on Wednesday.