Altria Stock Dips on Negative Rating from Jefferies

Altria stock is facing a downturn after Jefferies issued a negative rating, with a price target of $50 per share over the next year. Altria’s focus on smoke-free products is promising, but declining cigarette unit volumes remain a concern. The stock was down 4.1% in Wednesday’s trading amid broader market gains.

Jefferies believes Altria’s valuation is stretched, leading to potential downside of 12.5%. The company is working to offset declining cigarette sales with smoke-free products. Despite the recent pullback, Altria stock has seen a 24% increase over the past year. The stock is currently trading at approximately 10.6 times this year’s expected earnings.

Altria’s future hinges on the success of its smoke-free products amid a potential decline in smokable tobacco consumption. While the company has made progress in this area, concerns about its valuation persist. Altria’s stock pays a dividend yielding around 7.2%, and its forward-looking strategy will be crucial for maintaining investor confidence.

Read more at Yahoo Finance: Why Altria Stock Is Sinking Today