Read Why Goldman Sachs Downgraded This Cigarette Maker

• Goldman Sachs analyst Bonnie Herzog downgraded Philip Morris International Inc (NYSE:PM) to Neutral from Buy with a price target of $100, down from $116, implying a 6.22% upside.
• The analyst thinks that given the risk in the situation of Russia and Ukraine, the management will be forced to lower the FY22 outlook as Philip Morris garners 8% revenue from these places combined.
• Herzog also flagged potential headwinds from currency and user acquisition rates for its heated tobacco brand iQOS due to chip shortages and neo gas supply disruption.
• Philip Morris halted its Russian investments as global companies faced the heat to respond to Russia’s invasion of Ukraine.
• Price Action: PM shares are trading lower by 0.86% at $93.33 in premarket on the last check Tuesday.