Analysts Favor ‘Buy’ for Altria

As of July 2, Altria Group (MO) was trading at $55.80, and analysts’ 12-month stock price target was $68.57, implying a 22.7% return. On June 26, Morgan Stanley cut its target price from $65 to $63, while Jefferies lowered its target price from $84 to $70 on June 1. Since Altria’s first-quarter earnings announcement, Deutsche Bank, Citigroup, and Berenberg have lowered their price targets for its stock. The dip of 4.2% in Altria’s cigarette shipment volumes and increasing restrictions on tobacco products appear to have prompted analysts to lower their price targets.