Investment Recommendation: We are raising our target price for Philip Morris CR to CZK19,527. Our Buy recommendation remains unchanged. (Our previous recommendation and TP were Buy and CZK17,041 as of March 21, 2024.) PMCR traditionally pays its entire net profit to shareholders. The company has a very strong balance sheet with no leverage. The tobacco and nicotine industry are subject to strict regulations on smoking prevention and restriction. Tobacco products are also subject to excise duties, which we expect to increase for both traditional cigarettes and smoke-free products. Tighter regulations or higher excise taxes than in neighboring countries could reduce demand for PMCR products.