Goldman Sachs analyst Bonnie Herzog maintains $Altria (MO.US)$ with a buy rating, and adjusts the target price from $53 to $57.
According to TipRanks data, the analyst has a success rate of 55.4% and a total average return of 3.6% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Altria (MO.US)$'s main analysts recently are as follows:
The 'Optimize & Accelerate' Initiative by Altria Group, which aims to save around $600M in the next five years for reinvestment into driving top line growth, is seen as a favorable move due to the company's modest achievements towards its Smoke-free Vision thus far. The near 8% rise in the company's stock is perceived more as a shift from other underperforming staple stocks to the more stable tobacco sector rather than being solely based on the company's third-quarter performance and future prospects.
Altria Group's third-quarter results showcased impressive performance amidst challenging economic conditions, leading to solid net price realization and a resurgence in OCI dollar profit growth within the Smokeables segment. Despite the anticipation of a reversal in the cigarette inventory timing benefit in the fourth quarter, this is expected to be largely counterbalanced by an additional shipping day, which is projected to have a comparable benefit to the third quarter.
Altria Group exhibited a robust profit performance in the Smokeable business, surpassing expectations due to favorable inventory movements. The company's third-quarter earnings were bolstered by these dynamics, and although inventory played a role in the earnings per share beat, the underlying profitability reassured as it followed increased investment from the previous year. Additionally, the confidence in the company's capacity to reach its medium-term guidance is supported by a new $600 million cost savings plan, which is expected to drive reinvestment into smoke-free products.
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