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What Are Analysts Recommending for Altria Group?

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Target price

As of June 9, 2017, Altria Group (MO) was trading at $75.46. The stock price might have factored in various estimates that we have discussed in our earlier articles. In this article, we’ll look at analysts’ target price and their recommendations for Altria.

The FDA’s announcement that it would start a substantive science review of the company’s modified risk tobacco product (or MRTP) application appears to have prompted analysts to raise their target price. As of June 9, 2017, analysts are forecasting a price target of $74.31 compared to $73.2 before the announcement of 1Q17 earnings. However, the new target price represents a fall of 1.5% from its current stock price.

The return potentials for Altria’s peers for the next 12 months are as follows:

  • Philip Morris International (PM) has a target price of $121.71 with a return potential of 1.3%.
  • Reynolds American (RAI) has a target price of $62.13, a fall of 4.9% from its current stock price.
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Analyst ratings

Of the 13 analysts that follow Altria, 38.5% are recommending a “buy,” 53.8% are recommending a “hold,” and the remaining 7.7% are recommending a “sell.” On June 5, 2017, Vetr had upgraded the stock from “sell” to “buy” with a target price set at $80.18. Earlier on May 26, 2017, Royal Bank of Canada restated its “sell” rating with a target price set at $62.0.

Altria’s stock moves in tandem with analysts’ estimates. When analysts raise their target price, the stock moves up and vice versa. The target price being lower than the current stock price doesn’t mean an automatic “buy.” Investors should carefully analyze the various parameters discussed in our earlier articles before making any investment decisions.

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