: JPMorgan upgrades Philip Morris to overweight from neutral as top pick among tobacco companies

Philip Morris international Inc. PM rose 1.6% in premarket trade after JPMorgan Chase & Co. upgraded the tobacco company’s stock to overweight from neutral and hiked its price target to $116 a share from $109 a share. Analyst Jared Dinges said the company ranks as the firm’s top pick in tobacco. Its heated tobacco device Iqos Iluma has gained market share in its initial launch but it’s been impacted by supply chain constraints that Dinges expects to ease in the second half of this year and accelerate earnings growth for the company. At recent levels, Philip Morris International stock offers an “attractive entry point for a unique best-in-class growth story.” The company may also have an opportunity to pursue separate stock listings for its next-generation products and its tobacco business.  “Over the medium to long term, as PMI crosses the threshold to become a majority smokefree company (which we anticipate in 2026), we see scope for valuation multiple expansion,” Dinges said. 

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