The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from PR Newswire

S&P Equity Research Picks PM Focus Stock of the Week

Monday, June 13, 2011

S&P Equity Research Picks PM Focus Stock of the Week14:48 EDT Monday, June 13, 2011NEW YORK, June 13, 2011 /PRNewswire/ -- Philip Morris International (NYSE: PM: $67) has been picked by Standard & Poor's Equity Research as its Focus Stock of the Week.  PM carries S&P's highest investment recommendation of 5-STARS, or Strong Buy."Although consumer spending trends have remained weak with consumers reluctant to accept price increases despite high commodity prices, we think Philip Morris International is well positioned to navigate and grow in a difficult environment," said Esther Kwon, Tobacco Equity Analyst at Standard & Poor's Equity Research.  "We also see tobacco companies continuing to have strong relative pricing power."  On the commodity cost side, Kwon believes pressures are likely to be muted in 2011, with increases in the low single digits, due to a larger leaf crop expected in Brazil and planned cost reductions.  She looks for the company to post growth above its domestic-focused tobacco peers due to its exposure to developing markets, where she forecasts a minimum of low single digit volume growth, while she projects volumes in developed markets will continue to decline.  She also sees its broad geographic footprint, encompassing approximately 180 countries, and its number one or number two market share position in many of these markets as assets.  Over the long term, she thinks these leading market shares position the company to benefit from rising per capita incomes in developing countries and to offset short-term weakness in specific regions with strength in others. To view a video of Ms. Kwon discussing PM, paste the following link into your browser.  http://link.delvenetworks.com/media/?mediaId=af77be1e1a9142229a4e2c61354ad37e&width=480&height=411&playerForm=DelvePlayer&autoplay=true About Standard & Poor's Equity Research ServicesAs one of the world's largest producers of independent equity research, Standard & Poor's licenses its research to global institutions for their investors and advisors.  Standard & Poor's team of experienced U.S., European and Asian equity analysts use a fundamental, bottom-up approach to assess a global universe of equities across industries worldwide.  Follow Standard & Poor's equity analysts' U.S. market commentary each day at http://www.equityresearch.standardandpoors.com/.Standard & Poor's keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of Standard & Poor's may have information that is not available to other Standard & Poor's business units. Standard & Poor's has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process. Standard & Poor's does not trade for its own account.  The analytical and ethical conduct of Standard & Poor's equity analysts is governed by the firm's Research Objectivity Policy, a copy of which may be found at www.standardandpoors.com. For more information contact:Marc Eiger, Communications, Tel.: 212-438-1280marc_eiger@standardandpoors.comAll information provided by Standard & Poor's is impersonal and not tailored to the needs of any person, entity or group of persons.  Past performance is no indication of future results. Standard & Poor's and its affiliates provide a wide range of services to, or relating to, many organizations, including issuers of securities, investment advisers, broker-dealers, investment banks, other financial institutions and financial intermediaries, and accordingly may receive fees or other economic benefits from those organizations, including organizations whose securities or services they may recommend, rate, include in model portfolios, evaluate or otherwise address.This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only current as of the stated date of their issue. Prices, values, or income from any securities or investments mentioned in this report may fall against the interests of the investor and the investor may get back less than the amount invested. Where an investment is described as being likely to yield income, please note that the amount of income that the investor will receive from such an investment may fluctuate. Where an investment or security is denominated in a different currency to the investor's currency of reference, changes in rates of exchange may have an adverse effect on the value, price or income of or from that investment to the investor. The information contained in this report does not constitute advice on the tax consequences of making any particular investment decision. This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation of particular securities, financial instruments or strategies to you nor is it considered to be investment advice. Before acting on any recommendation in this material, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice.This material is based upon information that we consider to be reliable, but neither S&P nor its affiliates warrant its completeness, accuracy or adequacy and it should not be relied upon as such. With respect to reports issued to clients in Japan and in the case of inconsistencies between the English and Japanese version of a report, the English version prevails. With respect to reports issued to clients in German and in the case of inconsistencies between the English and German version of a report, the English version prevails. Neither S&P nor its affiliates guarantee the accuracy of the translation. Assumptions, opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice. Neither S&P nor its affiliates are responsible for any errors or omissions or for results obtained from the use of this information. Past performance is not necessarily indicative of future results.SOURCE Standard & Poor's