Philip Morris International's (PM) Q1 organic operating income growth is expected to be flat year over year due to comparisons and investment phasing, Morgan Stanley said in a Monday note.

Analysts said that destocking of the delayed Zyn trade inventory is expected in Q1, compared with the trade inventory replenishment that took place a year earlier, but note that the headwind will likely dissipate for the remainder of the year.

Morgan Stanley said it expects the company to record consensus-beating growth over the mid-term, driven by continued international Iqos momentum; "solid" growth for Zyn in the US and the US launch of Iqos Iluma, estimated for late 2026.

Analysts said Zyn's retail takeaway trends have improved, noting that volumes could rise further with the likely authorization of Zyn Ultra by the US Food and Drug Administration.

Morgan Stanley maintained an overweight rating on the stock and increased its price target to $205 from $175.

Shares of Philip Morris were down more than 1% in recent trading.

Price: 180.60, Change: -2.13, Percent Change: -1.17