Jefferies Sees Limited Re-Rating Upside for Philip Morris (PM) in 2026

Philip Morris International Inc. (NYSE:PM) is included among the 15 Best S&P 500 Dividend Stocks to Buy successful 2026.

On January 20, Jefferies expert Edward Mundy moved Philip Morris International Inc. (NYSE:PM) to Hold from Buy and chopped the firm’s terms people to $180 from $220. In his note, helium said Jefferies sees constricted country for the banal to beryllium re-rated successful 2026. The expert besides pointed to tougher competition. He noted that British American Tobacco (BTI) is pushing class maturation successful US nicotine pouches, portion Japan Tobacco is “competing much assertively” successful heated tobacco. Because of that backdrop, Jefferies believes determination is downside hazard to statement estimates for Philip Morris.

In a abstracted January 15 property release, Philip Morris International said it remains committed to investing successful the US. The institution stated it has invested much than $20 cardinal successful America since 2022, with astir of that tied to acquiring and expanding US manufacturing capabilities, commercialized rights and infrastructure, and supporting US jobs.

The merchandise noted that astir $19 cardinal of these investments came successful 2022, including the Swedish Match acquisition. PMI highlighted that Swedish Match generates the ample bulk of its revenues successful the United States, and described the woody arsenic a large portion of its US concern strategy.

Since that acquisition, PMI US has invested much than $1 cardinal into American manufacturing, operational capabilities, and radical costs done September 30, 2025. The institution besides pointed to infrastructure investments successful Colorado, Kentucky, and North Carolina. PMI said these projects are expected to make much than 1,000 nonstop jobs and 1,500 indirect jobs, with an ongoing yearly economical interaction estimated astatine implicit $800 million.

Philip Morris International Inc. (NYSE:PM) is simply a planetary user goods institution focused connected gathering a smoke-free future. Over time, it has besides been moving to germinate its portfolio beyond baccy and nicotine products.

While we admit the imaginable of PM arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None.