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BofA Securities Maintains Altria(MO.US) With Hold Rating, Raises Target Price to $55

Futu News ·  Nov 1 17:33  · Ratings

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.

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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.

Note:

TipRanks, an independent third party, provides analysis data from financial analysts and calculates the Average Returns and Success Rates of the analysts' recommendations. The information presented is not an investment recommendation and is intended for informational purposes only.

Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.

TipRanks provides a ranking of each analyst up to 5 stars, which is representative of all recommendations from the analyst. An analyst's past performance is evaluated on a scale of 1 to 5 stars, with more stars indicating better performance. The star level is determined by his/her total success rate and average return.

The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
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