It is time to buy Philip Morris International because the Marlboro maker shifts to smokeless alternatives, in keeping with Jefferies. Analyst Owen Bennett upgraded shares of the tobacco company to purchase from hold and raised his price goal after Philip Morris doubled down on efforts to amass oral nicotine company Swedish Match. “We upgrade PM to Buy, recent PT USD118, as we also now capture the contribution from the SM deal,” Bennett wrote Thursday. The analyst said Philip Morris is leading the shift in what’s called reduced-risk products. RRPs are smokeless alternatives to cigarettes which might be presented as less harmful, which is vital to delivering “sizable upside” for tobacco corporations. Philip Morris said it expects its efforts to change into the only real owner of Swedish Match will support its “ambition to deliver a smoke-free future.” “On a longer-term basis, we have now consistently been constructive on PM since it is leading the shift over to the tobacco model of the long run, each RRP and Beyond Nicotine. On the previous, it’s the worldwide leader, with estimated RRP share of 23%, in comparison with 21% share in combustibles,” Bennett wrote. Philip Morris shares are down nearly 2% in 2023, after closing last 12 months up greater than 12%. Meanwhile, the analyst’s $118 price goal, up from $86, suggests shares can jump one other 18% from Wednesday’s closing price. The tobacco stock rose greater than 1% in Thursday premarket trading. — CNBC’s Michael Bloom contributed to this report.