$50 target and equal weight odds
- Altria (NYSE:MO) shares received a $50 price target from Morgan Stanley. These are the details.
Altria (NYSE:MO) shares received a $50 price target from Morgan Stanley. And Morgan Stanley analyst Pamela Kaufman recently adjusted the company’s rating from “Equal weight” to “Underweight.”
“We see a bearish-to-bullish bias of around 1.5:1.0. Altria shares have outperformed the S&P 500 by 27% year-to-date, and after adjusting for the 7% decline in the price of ‘ABI in USD, MO core activity is +29% month-to-date,” Kaufman wrote in the research note earlier this month. “The market may continue to move towards more defensive positioning , but we believe the risk-reward trade-off is on the downside given the combination of near-term fundamental pressures and our longer-term concerns about (Altria’s) cigarette portfolio, limited RRP supply and SWMA acquisition pending PM.
The new price target reflects IQOS entering the US market in 2024. And Kaufman sees an adverse risk-reward with a 24% decline from the $41 bearish case and a 13% upside from the $41 bearish case. $61 bullish case.
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