Philip Morris International (NYSE: PM) continues to impress investors, with its stock reaching record highs fueled by surging 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. This surge underscores the market’s growing confidence in Philip Morris’ transformation into a leader in the smoke-free products sector.

Zyn: The Game-Changer for Philip Morris

At the core of this bullish outlook is the rapid growth of Zyn, the U.S. market leader in oral nicotine pouches. In the third quarter of 2024, shipments of Zyn in the U.S. increased by over 41% compared to the same period last year. According to Philip Morris’ CFO, Emmanuel Babeau, the momentum behind Zyn shows no signs of slowing, with demand expected to match shipments by the end of 2024. The company also highlighted that international sales of Zyn surged by nearly 70%, expanding into new markets such as Greece and the Czech Republic.

The success of Zyn is not just a U.S. story—it’s a global one. With the brand now available in 30 markets worldwide, its strong growth has made Zyn a cornerstone of Philip Morris’ strategy to reduce dependence on traditional combustible tobacco products.

Analysts Forecast Long-Term Growth for Philip Morris

Stifel analyst Matthew E. Smith recently reiterated a Buy rating for Philip Morris, raising his price target to $145 from $138. He emphasized that the continued rise in demand for smoke-free products like Zyn and IQOS is a key driver for the company’s long-term expansion. Smith projects 9.5% EPS growth for 2025, largely fueled by 8% organic revenue growth, supported by Zyn’s expanding market share in both the U.S. and Europe.

Philip Morris raised its forecast for U.S. Zyn shipments in 2024, expecting between 570 and 580 million cans, reflecting a 10 million increase at the low end. This growth outlook underscores the company’s confidence in Zyn’s role in its broader strategy to diversify beyond cigarettes.

Zyn: A Symbol of Tobacco Industry’s Transformation

Philip Morris’ ongoing success with Zyn is part of a broader industry shift towards smoke-free alternatives. The company’s investment in building a $600 million Zyn production facility in Colorado reflects its long-term commitment to expanding capacity for its top-selling product. With Zyn driving both net revenue growth and market share gains, Philip Morris is now being seen as a growth stock—something that hasn’t been said about the company in over a decade.

In 2024, Philip Morris shares have surged nearly 40%, marking the company’s best year on record since its separation from Altria in 2008. As demand for Zyn continues to climb, the stock’s upward trajectory appears poised to continue, making Philip Morris a key player in the future of the smoke-free market.