Analysts Cool on Tobacco Stock After JUUL Deal

Altria Group has received a round of bearish analyst attention

Managing Editor
Dec 21, 2018 at 9:29 AM
facebook X logo linkedin


The shares of Altria Group Inc (NYSE:MO) are down 3.1% in early trading at $48.89, after Citigroup downgraded the stock to "sell" from "neutral," while trimming its price target $45 from $47. In addition, Independent Research downgraded MO to "sell" from "hold" and slashed its price target to $47 from $59, and Stifel chimed in with a price target hike of its own, to $59 from $70. Stifel said that Altria will "struggle to earn a sufficient return" on its investment in JUUL, citing what it saw as a "rich" evaluation.

As such, MO stock is trading at fresh three-year lows for a second straight day, and is on track for its third straight weekly loss. During this time frame, the shares have faced pressure from their descending 20-day moving average. Overall, MO has shed 19% in the past three months.

Despite the recent flurry of bear notes, analyst sentiment remains bullish. Of the 15 brokerages covering MO, 11 rate it a "buy" or "strong buy," with four "sells" on the books. Further, the security's consensus 12-month price target of $62.55 is a 24% premium to yesterday's closing perch of $50.44, suggesting today's onslaught of bear notes could be far from the last. 

In addition, short sellers have been skeptical to jump aboard. Shorts in fact have been hitting the exits, with short interest down 15% in the last two reporting periods. However, the 21.28 million shares sold short is the lowest amount since mid-July 2018, and represents a meager 1.1% of MO's total available float.  

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI