Piper Jaffray analyst Michael Lavery considers Philip Morris' underlying base earnings growth and incremental gains from iQOS to be attractive, though higher spending tempers incremental benefits near-term. While uncertainty about the long-term outlook for the business appears to be weighing on investor sentiment, and while management's communication around the issues does not appear to add sufficient clarity, the analyst believes the selloff in the shares appears to be "overdone." The business remains on track for high single-digit organic revenue growth and high single-digit EPS growth, which compares favorably to other names in consumer staples, he argues. Lavery reiterates an Overweight rating and $126 price target on the shares.