Credit Suisse analyst Alan Erskine downgraded Philip Morris (PM) to Underperform and lowered his price target for the shares to $74 from $92. After conducting a survey of next-generation products users in Japan, the U.S. and the U.K., the analyst believes slower progress in the take-up of heated tobacco products and weaker combustible organic growth will challenge the high-single-digit earnings growth models of Philip Morris and British American Tobacco (BTI). Further, exposure to e-vapor favors Imperial Brands (IMBBY), Erskine tells investors in a research note. He believes Philip Morris' "premium" valuation reflects overly optimistic expectations for heated tobacco products. The analyst prefers shares of Outperform-rated Imperial Brands and British American Tobacco to Philip Morris.