Credit Suisse Previews PM 1Q11 Results

Credit Suisse reports that it favors Philip Morris International, Inc. (NYSE: PM) shares “thanks to its strong pricing power/momentum, unmatched ability to generate strong cash flows (in good and bad times) and the untapped long-term growth potential in non-OECD markets.”

“The shares are also well supported in the ST by excellent margin visibility (moderate leaf cost inflation at times when Consumer Staples peers face escalating input costs) and attractive cash returns of ~8% (4% dividend yield + 4% buyback yield), all of which outweigh risks such as regulatory threats (plain packaging in Australia) and difficult trading in Southern Europe,” Credit Suisse writes.

Philip Morris International closed Tuesday at $66.04.