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Analysts’ Recommendations for Altria after Its 1Q17 Earnings

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Target price

As of May 4, 2017, Altria Group (MO) is trading at $70.22. The stock price might have factored in various estimates we discussed earlier in this series. In this part, we’ll look at analysts’ target price and recommendations.

Although Altria’s 1Q17 earnings and revenues were lower than analysts’ estimates, analysts raised the target price marginally from $73.2 to $73.6. The new target price represents a return potential of 4.8%. The expansion of MarkTen’s availability in 10,000 more stores and the introduction of new MarkTen flavors could have compelled analysts to raise their target price.

Below are the return potentials for Altria’s peers for the next 12 months:

  • Philip Morris International (PM) has a target price of $117.80 with a return potential of 6.5%.
  • Reynolds American (RAI) has a target price of $61.05—a fall of 5.3% from its current stock price.
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Analysts’ recommendations

Of the 13 analysts that follow Altria, 38.5% recommended a “buy,” 53.8% recommended a “hold,” and 7.7% recommended a “sell.” Altria’s stock price moves in tandem with analysts’ recommendations. When an analyst raises the target price, the stock should rise and vice versa. A target price that’s greater than the current price doesn’t mean an automatic “buy.” Before making any investment decisions, investors should carefully analyze the various parameters that we discussed throughout this series.

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