BofA Securities analyst Lisa Lewandowski maintains $Altria (MO.US)$ with a hold rating, and adjusts the target price from $53 to $55.
According to TipRanks data, the analyst has a success rate of 73.9% and a total average return of 14.1% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Altria (MO.US)$'s main analysts recently are as follows:
The new 'Optimize & Accelerate' initiative by Altria Group, aimed at generating significant savings over the coming five years to reinvest in top-line growth, is seen positively given the company's modest progress towards its Smoke-free Vision so far. However, the substantial stock movement recently is perceived more as a shift from other underperforming staples stocks to the comparatively stable tobacco sector, rather than a reaction to the company's third-quarter performance and future prospects.
Altria Group's Q3 results showcased effective performance amidst challenging economic conditions, leading to substantial net price realization and a resurgence in OCI dollar profit growth within its Smokeables segment. Although the cig inventory timing benefit is anticipated to reverse in Q4, it is expected to be generally counterbalanced by an extra shipping day, which is estimated to provide a benefit comparable to that seen in Q3.
Altria Group exhibited a solid profit performance in its Smokeable business, which saw unexpected benefits from inventory movements, leading to a stronger third-quarter business outcome than anticipated. The Smokeable business's profitability was particularly encouraging, even as the company compared against increased investment from the previous year. With the introduction of a new $600M cost savings initiative, there is a sense of confidence in the company's capability to meet its medium-term projections, which also provides resources for further investment in smoke-free products.
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