Analyst Lisa Lewandowski of Bank of America Securities maintained a Hold rating on Altria Group (MO – Research Report), with a price target of $44.00.
Lisa Lewandowski has given her Hold rating due to a combination of factors impacting Altria Group’s market position and regulatory environment. Altria’s recent pricing strategy, which includes a differentiated price increase for various Marlboro products, is a strategic move aimed at sustaining profitability amid declining cigarette volumes, particularly in specific brands and variants. Furthermore, challenges such as the potential federal ban on menthol cigarettes and the increase in illicit trade, particularly from Chinese sources, contribute to an uncertain outlook for Altria Group.
Maintaining a Neutral stance, Lewandowski’s price objective for Altria reflects a cautious optimism, set at $44 based on 8.4 times the projected 2025 earnings per share of $5.25, which is a discount to historical averages. This conservative valuation accounts for the company’s ability to navigate the shifting U.S. nicotine sector while facing headwinds like possible regulatory changes to menthol and nicotine level policies. The Hold rating encapsulates these risks and acknowledges the company’s historical resilience in the face of evolving market conditions.
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Based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MO in relation to earlier this year.
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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.
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