Philip Morris: Strong Sales, Lower Health Risks From Smokeless Products

Summary

• Philip Morris is shifting towards smoke-free products to reduce harm caused by smoking, aiming for smokeless products to generate over two-thirds of total net revenues by 2030.
• Strong performance in 2Q with increased demand for Zyn nicotine pouches led to a raised forecast for net income growth.
• Despite the controversial past, Philip Morris' shares continue to be a strong buy, with impressive revenue growth and transition towards smoke-free products showing promising results.
• I see this as strong play given their ability to provide products that will help potentially prevent millions from succumbing to cigarettes, which are known to cause lung disease and cancer.

Baloncici

Investment Thesis

Historically, Philip Morris (NYSE:PM) has been synonymous with cigarettes and therefore chronic diseases like lung cancer and emphysema. Their major brands, including Marlboro, have been household names.

However, the company's push towards smoke-free products in more

Analyst’s Disclosure: I/we have a beneficial long position in the shares of PM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Noah Cox (account author) is the managing partner of Noah’s Arc Capital Management. His views in this article are not necessarily reflective of the firms. Nothing contained in this note is intended as investment advice. It is solely for informational purposes. Invest at your own risk.