NEW YORK (TheStreet) -- Shares of Philip Morris  (PM - Get Report) were climbing in early-morning trading on Monday after Goldman Sachs upgraded the stock to "conviction buy" from "neutral."

The firm increased its price target on shares of the New York City-based tobacco company to $114 from $106. 

Goldman Sachs is optimistic about the company's next-generation products, and believes they will contribute between 5% and 6% of earnings by 2020, TheFly reports.

The firm estimates that earnings growth will accelerate by 10% in 2017 vs. 2% growth in 2016, and anticipates a dividend hike in mid-September and share buybacks to resume in 2017. 

Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C+.

Philip Morris' strengths such as its expanding profit margins and solid stock price performance are countered by weaknesses including deteriorating net income and weak operating cash flow.

You can view the full analysis from the report here: PM

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.