Philip Morris International
"While we must admit that we are surprised by the outperformance of PMI year-to-date (YTD) versus the overall group following its strength in 2011, we believe the momentum should continue for the year," Davenport analysts wrote in a March 26 report. "The overall tobacco group has underperformed the S&P 500 Index YTD, but PMI has clearly outperformed the tobacco group. We are raising our rating to a Buy and initiating our 12 month price target of $100, based on our new 2013 EPS of $5.90. We focus on three key reasons: consistency, a relatively benign tax environment and attractive yield."
Shares of Philip Morris hit a 52-week high Friday of $88.82. The stock's 52-week low of $60.45 was set on Oct. 4.Philip Morris' estimated price-to-earnings ratio for next year is 15.04 times; the average for tobacco companies is 12.16. For comparison, Altria (MO) and Lorillard (LO) both have lower forward P/Es of 13.07 and 13.22, respectively. Fifteen of the 22 analysts who cover Philip Morris rated it buy. Six analysts gave the stock a hold rating and one rated it sell. TheStreet Ratings gives Philip Morris a B grade with a buy rating and a $113.98 price target. The stock has risen 13.07% year to date.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV