Jefferies Upgrades Altria Group Stock on Vapor, Cannabis Tailwinds

The firm also raised its price target to $58 from $40

Deputy Editor
Mar 26, 2021 at 9:29 AM
facebook twitter linkedin


Tobacco stock Altria Group Inc (NYSE:MO) is in the spotlight today, after an upgrade from Jefferies to "buy" from "hold." The firm also raised its price target to $58 from $40, citing the company's underappreciated moves into vapor and cannabis, and noting the long-term potential decline of smoking. At last look, MO was up 0.9% to trade at $50.67 ahead of the opening bell.

On the charts, Altria Group stock is recently removed from its March 22 annual high of $51.72. After breaking past pressure at the $44 level in mid-February, MO enjoyed a consistent climb with help from its 20-day moving average. Year-to-date, the security is up 22.4%. 

Coming into today, analysts were split on Altria Group stock. Of the 11 in coverage, six carried a "buy" or better rating on the equity, with five recommending a tepid "hold." Meanwhile, today's positive price action has MO inching toward its 12-month consensus price target of $51.14. 

The options pits lean bullish, per MO's 50-day call/put volume ratio of 4.15 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 76% of readings from the past year, indicating a healthier-than-usual appetite for long calls over the last 10 weeks.

Plus, these premiums are attractively priced at the moment. The stock's Schaeffer's Volatility Index (SVI) of 21% stands higher than just 3% of all other readings in its annual range, implying options players are pricing in relatively low volatility expectations at the moment. 

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners