Goldman Sachs Maintains Buy Rating On PM

Goldman Sachs is maintaining its Buy rating and its $74 price target on Philip Morris International PM in spite of minor price cuts taking place in Spain. Says Goldman Sachs, in the report, “Imperial Tobacco issued a profit warning today in response to the recent price cuts in Spain. Specifically, Imperial reduced its profit guidance by around £200 mn, or 6% of IMT's FY10 EBIT on an annualized basis… While this development in Spain is bothersome, we maintain our CL-Buy call and estimates for Philip Morris International (PM) at this point.” PM closed at $67.53 yesterday.