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Deutsche Bank downgrades Altria citing valuation and regulatory challenges
Deutsche Bank has downgraded Altria Group to "Hold" from "Buy," citing limited upside after a strong rally and ongoing regulatory challenges related to its NJOY e-vapor business. Despite a 15% gain this year and an attractive 7% dividend yield, the firm believes the stock is fairly valued at 11.3 times estimated 2025 earnings, with a price target of $60, indicating only 2% upside. Altria faces regulatory hurdles following a ruling that its NJOY products infringe on Juul Labs' patents, impacting its future prospects.
UBS analyst Faham Baig raised Altria's price target to $46 while maintaining a Sell rating, citing concerns over pricing strategies and market share losses. Despite a strong dividend yield and impressive profit margins, Altria faces challenges with declining cigarette volumes and regulatory pressures, which could impact future earnings. The company reported fourth-quarter earnings meeting expectations and confirmed its 2025 EPS guidance, while analysts remain divided on its outlook.
ubs raises altria price target to 46 while maintaining sell rating
UBS analyst Faham Baig raised Altria's price target to $46 while maintaining a Sell rating, citing concerns over pricing strategies and market share loss. Despite a strong dividend yield and recent earnings meeting expectations, challenges in cigarette volumes and regulatory issues could impact future net income. Altria's stock trades at $60.02, near its 52-week high, with analysts divided on its outlook.
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