Philip Morris International Inc: Robust Underlying IQOS Growth With Catalysts Ahead; Raise PT to $215

Research evidence excerpt

Philip Morris International Inc: Robust Underlying IQOS Growth With Catalysts Ahead; Raise PT to $215

Idea

July 23, 2026 09:02 AM GMT

Morgan Stanley & Co. LLCMPhilip Morris International Inc | North America Eric A Serotta, CFA

Equity Analyst

Robust Underlying IQOS Eric.Serotta@morganstanley.comDara Mohsenian, CFA +1 212 761-2370

Dara.Mohsenian@morganstanley.com +1 212 761-6575

Growth With Catalysts Ahead; Patty Kanada, CFA

Patty.Kanada@morganstanley.com +1 212 761-1019

Raise PT to $215 Kenneth Tan

Research Associate

What’s Changed Kenneth.Tan@morganstanley.com +1 212 761-4954

Josh Haubenstock

Philip Morris International Inc (PM.N) From To Research Associate

Price Target $200.00 $215.00 Josh.Haubenstock@morganstanley.com +1 212 761-1059

We reiterate our OW with robust underlying international IQOS Philip Morris International Inc (PM.N, PM US)

Tobacco | United States of America

growth and potential catalysts ahead from improved US Zyn

Stock Rating Overweight

trends and US ILUMA authorization. Industry View In-Line

Price target $215.00

Shr price, close (Jul 22, 2026) $194.30

Reiterate Overweight: PM closed up +3.3% (vs the S&P 500 -0.1%) following a solid Mkt cap, curr (mm) $303,108

2Q topline/EPS beat and reiterated FY26 FX-N guidance. PM maintained FY26 52-Week Range $199.78-142.17

guidance due to accelerated investment in the US in 2H behind the expanded Zyn Fiscal Year Ending 12/25 12/26e 12/27e 12/28e

portfolio and IQOS ILUMA, with the latter likely reflecting PM's increased EPS ($)** 7.54 8.30 9.16 10.03

Prior EPS ($)** - 8.39 9.19 10.05

confidence that ILUMA will receive FDA authorization in late 2026 or early 2027. EPS ($)§ 7.53 8.41 9.13 9.93

We remain OW, as we see above-consensus (and above what's priced in) growth ModelWare EPS ($) 7.54 8.30 9.16 10.03