Philip Morris International's (PM) launch of Zyn Ultra nicotine pouches in the US will be a potential catalyst for the stock, Morgan Stanley said in a note emailed Wednesday.
In an investor conference Tuesday, the company said it is launching Zyn Ultra in the US this month in 9- and 11-milligram strengths across a range of flavors similar to the original Zyn offerings, which was largely expected after the Food and Drug Administration's new enforcement guidance for nicotine pouches and e-vapor products, according to the note.
Philip Morris also stated that its heat-not-burn category in Japan has been roughly matching its expectations, with IQOS holding its market share even after a significant excise tax-driven price increase on April 1, the firm noted.
Morgan Stanley said it projected above-consensus growth for the stock in the medium term driven by the continued momentum of IQOS globally, the Zyn Ultra launch pushing US growth, and the planned roll-out of IQOS ILUMA in the US.
Morgan Stanley maintained the company's stock rating at overweight and raised the price target to $200 from $190.
Price: $176.41, Change: $+2.75, Percent Change: +1.58%