11:30 AM EDT, 10/22/2025 (MT Newswires) -- Philip Morris ( PM ) Q3 results are not expected to allay market concerns about its nicotine pouch brand, Zyn, but the company is set for "substantial" growth ahead, analysts at Morgan Stanley said in a Wednesday note.

The company's growth will be driven by international momentum for its IQOS heated tobacco products, "solid" albeit slower than previously expected growth for Zyn, and the US launch of IQOS, expected in mid-2026, analysts said.

"We see a continued profitable growth runway for Zyn over the mid/long-term driven by growth in the modern oral category and moderating Zyn market share pressure over time," they added.

The analysts also noted that while the category faces more competition, Philip Morris' ( PM ) increased commercial investment and the launch of Zyn Ultra will moderate Zyn's market share decline.

Morgan Stanley has an overweight rating on the stock but lowered its price target to $175 from $182.

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