Goldman Sachs analyst Bonnie Herzog has maintained their bullish stance on MO stock, giving a Buy rating on October 13.
Bonnie Herzog has given Altria Group a Buy rating based on a multi-faceted analysis of the company’s current situation. Despite being initially unimpressed by the company’s Q3 results, Herzog doesn’t believe the results were bad enough to justify the stock’s sharp sell-off. The Smokeable OCI profit dollars were slightly less than expected, but Herzog doesn’t see this as a major alteration to the company’s overall trajectory.
Altria Group remains a high-quality asset due to its highly cash-generative tobacco business. There is, however, a degree of caution moving forward due to uncertain predictions about Altria’s ability to offset accelerating cigarette volume declines with pricing. This might result in a more limited profit or EPS upside. Regardless, Herzog maintains the Buy rating due to Altria’s attractive valuation and the potential for the stock to stabilize once there is more evidence of moderated cigarette volume decline or successful scaling of NJOY. Additionally, investors will benefit from Altria’s attractive 10% dividend yield in the meantime.
In another report released on October 13, Jefferies also maintained a Buy rating on the stock with a $56.00 price target.
See today’s best-performing stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Altria Group (MO) Company Description:
Virginia-based Altria Group, Inc. is a tobacco company, which manufactures and sells cigarettes, smokeless products, and wine in the United States. Its most popular cigarette brand is Marlboro. It sells cigars principally under the Black & Mild brand, and moist smokeless tobacco products under the Copenhagen, Skoal, Red Seal, and Husky brands. The company also produces and sells varietal and blended table wines, and sparkling wines under the Chateau Ste. Michelle and 14 Hands labels. It also owns wineries in or distributes wines from several other wine regions.
Read More on MO:
