Philip Morris Stock Hits Record High Driven by Surging Demand for ZYN Nicotine Pouches

Philip Morris International Inc. (NYSE: PM) has seen its stock reach record highs, fueled by the burgeoning demand for its smoke-free ZYN nicotine pouches. On Tuesday, the company’s shares hit an intraday peak of $131.97, marking the stock’s highest level ever.

The robust performance of ZYN has been a key driver of this growth. In the third quarter of 2024, shipments of ZYN in the U.S. increased by over 41% compared to the same period last year. International sales of ZYN also surged by nearly 70%, with the product now available in 30 markets worldwide, including new entries into Greece and the Czech Republic.

Philip Morris has revised its forecast for U.S. ZYN volumes in 2024, now expecting sales of 570 to 580 million cans, an increase of 10 million at the lower end. This upward revision reflects the company’s confidence in ZYN’s role in its broader strategy to diversify beyond traditional combustible tobacco products.

Analysts are optimistic about the long-term growth potential of Philip Morris, with Stifel analyst Matthew E. Smith reiterating a ‘Buy’ rating and raising his price target to $145 from $138. Smith projects 9.5% EPS growth for 2025, driven by 8% organic revenue growth and margin improvements from smoke-free products like ZYN and IQOS.

The success of ZYN is part of a broader industry shift towards smoke-free alternatives. Philip Morris’ investment in a $600 million ZYN production facility in Colorado underscores its long-term commitment to expanding capacity for its top-selling product. As a result, the company’s stock has surged nearly 40% in 2024, marking its best year on record since its separation from Altria in 2008.