Altria Group faces challenges amid declining cigarette volumes
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 05 Jan 26
Source: Barron's
Altria Group Inc's stock fell by 3.00% today, hitting a 20-day low. This decline comes amid broader market strength, with the Nasdaq-100 up 1.11% and the S&P 500 up 0.73%.
The drop in Altria's stock is attributed to a significant decline in cigarette volumes, which fell by 8.2% year-over-year in Q3 2025, with its flagship Marlboro brand experiencing an 11.7% drop. This long-term decline in the tobacco industry raises concerns about investor confidence and potential asset write-downs.
Investors are advised to approach Altria with caution, given the ongoing challenges in the tobacco market and the company's struggles with failed investments in vaping and marijuana, which have resulted in substantial losses.
Analyst Views on MO
Wall Street analysts forecast MO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MO is 65.60 USD with a low forecast of 57.00 USD and a high forecast of 72.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
4 Buy
1 Hold
1 Sell
Moderate Buy
Current: 63.130
Low
57.00
Averages
65.60
High
72.00
Current: 63.130
Low
57.00
Averages
65.60
High
72.00
About MO
Altria Group, Inc. operates a portfolio of tobacco products for United States tobacco consumers aged 21+. Its segments include smokeable products and oral tobacco products. The smokeable products segment consists of combustible cigarettes and machine-made large cigars. The oral tobacco products segment includes moist smokeless tobacco (MST) products and oral nicotine pouches. Its wholly owned subsidiaries include manufacturers of both combustible and smoke-free products. In combustibles, it owns Philip Morris USA Inc. (PM USA), and John Middleton Co. (Middleton), which are cigarette manufacturers. Its smoke-free portfolio includes ownership of U.S. Smokeless Tobacco Company LLC (USSTC), a global MST manufacturer, Helix Innovations LLC (Helix), a manufacturer of oral nicotine pouches, and NJOY, LLC (NJOY), an e-vapor manufacturer with a commercialized product portfolio. The brand portfolios of its operating companies include Marlboro, Black & Mild, Copenhagen, Skoal, on! and NJOY.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
