Shares of tobacco maker Philip Morris International Inc. (PM) dropped on Tuesday after the company was downgraded by equities researchers at Credit Suisse Group to "underperform" from "neutral."
Philip Morris shares were down 5.3% to $77.06 on the New York Stock Exchange after Credit Suisse downgraded the company's stock and slashed its price target to $74 from $92, citing the company's reliance on heated tobacco products.
Philip Morris and other tobacco makers have seen increased competition from e-cigarettes and other e-vapor products that still contain nicotine but generally have fewer byproducts such as tar.
The company is also in the vaping game, with e-vapor products that use nicotine extracted from tobacco leaves. These battery-powered devices - commonly known as e-cigarettes - vaporize a liquid solution containing nicotine and flavors.
The company in 2014 acquired Nicocigs, a U.K.-based e-cigarette company that produces a variety of products (Nicocig and Vivid) that includes disposables, re-chargeables and tank systems.
Through subsidiaries, Philip Morris makes and sells cigarettes and other nicotine-containing products. Brands include Marlboro, Merit, Parliament, Philip Morris, Next and Red & White.