UPDATE: Morgan Stanley Lowers PT on Philip Morris International on Multiple Positive Factors

In a report published Thursday, Morgan Stanley analyst David J. Adelman reiterated an Overweight rating on

, and lowered the price target from $95.00 to $92.00. In the report, Morgan Stanley noted, “Philip Morris operates in an inherently attractive industry, with high profit margins & substantial free cash flow. The company benefits from significant geographic diversification, with good exposure to EMs (growth) and Developed Markets (high margins). Product innovation and cost saving realization are improving. We anticipate continued improvement in PM's local-currency operating results, driven by a general absence of excise tax shocks and continued strong industry pricing. Trading at ~13.8-times and ~9.7-times 2014e EPS and EV/EBITDA, we believe that valuation remains attractive versus premium Staples peers (e.g., KO/CL/Nestle).” Philip Morris International closed on Thursday at $82.95.