What changed
$PM — WATCHLIST 📊 | 6 MONTHS THESIS
🎯 Q1 2026 | Rev $10.1B | EPS $1.96 vs $1.83 🟢 | Margin 38.4%
💡 Consensus expects mid-single-digit constant-currency EPS growth (FY26 ~$8.40, P/E 21.8x). Market is already pricing in a successful RRP transition and premium pricing power. Our variant view is that growth deceleration risks are underappreciated — as IQOS penetration matures in key markets — and any slip in shipment volume or margin pressure could...
📉 Reward/risk: 2.0:1
🏢 Business Quality: 8/10 - PM is a wide-moat tobacco leader with high gross margins (68%), strong brand pricing power, and a dominant heated-tobacco franchise (IQOS). Its free cash flow generation is robust when normalized, and capital allocation is shareholder-friendly (dividends, buybacks).
📊 Our read: WATCHLIST. Full analysis →
https://stockduty.xyz/s/PM0612