Philip Morris International Inc PM

Philip Morris International Earnings: Impressive Volume Growth, but Shares Fairly Valued

Wide-moat Philip Morris International reported solid second-quarter 2024 results, leading to upgraded full-year guidance. Management now expects organic net revenue growth of 7.5%-9%, up from 7%-8.5%, with the midpoint of the range near our preearnings-call forecast of 8.3%. Better growth stems from stable cigarette and HTU volumes and the continued strength of Zyn in the US. We’re likely to raise our fair value estimate by a low-single-digit percentage, roughly in line with the market reaction, on stronger near-term volumes.