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How Analysts View Altria after Its 4Q17 Earnings

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Target price

On February 1, 2018, Altria Group (MO) traded at $69.93. On the same day, analysts expected the company’s stock price to reach $77.69, which represents a return potential of 11.1%.

The introduction of new Nu-Mark e-vapor products and expansion of the availability of Marlboro Black, Benson & Hedges menthol, and Marlboro Ice appears to have encouraged analysts to raise their target prices. On January 29, 2018, Morgan Stanley raised its target price from $65.00 to $74.00.

Of the 15 analysts that follow Altria, 66.7% favored “buy” recommendations and the remaining 33.3% recommended a “hold.” None of the analysts recommended “sell” options.

Currently, Altria is trading below analysts’ 12-month target price. However, this doesn’t mean an automatic “buy.” Investors should study the analysts’ estimates discussed in our earlier articles before making any investment decisions.

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Peer comparisons

Of the 17 analysts that follow Philip Morris International (PM), 52.9% are recommending a “buy” option, and the remaining 47.1% are recommending a “hold.” In the next 12 months, analysts expect the company’s stock price to reach $122.73 in the next 12 months, which represents a return potential of 16.7%.

Of the two analysts that follow British American Tobacco (BTI), both favor a “buy” recommendation. In the next 12 months, analysts expect the company’s stock price to reach $80.00, which represents a return potential of 17.5%.

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