UPDATE: Jefferies Initiates Hold, $89 PT on Philip Morris

Jefferies initiates its coverage on Philip Morris (NYSE: PM) with a Hold rating and a $89 price target, on expectations that 2012 may be slower than the previous year.

Jefferies says, "We are initiating coverage of Philip Morris International with a Hold rating and $89 target price. We are believers in the long-term growth story but are concerned about a possible slowdown for PM in 2012 after a record setting 2011 due to a windfall in Japan. We, therefore, consider the equity to be fairly valued for now, reflecting the continued growth from Asia and the improving trends for Marlboro (about 30% of volume)."

PM closed at $81.65 a share on Wednesday.