NY Attorney General Urges Credit Card Companies to Block Illegal Vaping Sales
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 16 hours ago
0mins
Attorney General Dave Sunday led a bipartisan coalition of 24 other Attorneys General and the City of New York in urging major credit card companies and payment processors - including American Express (AXP), Capital One (COF), Citi (C), Mastercard (MA), Visa (V), PayPal (PYPL), Stripe, Sezzle, and Block (XYZ) - to take stronger action to prevent their payment networks from being used to facilitate sales of illegal vaping products. In letters sent to the corporate leadership of each company, Attorney General Sunday and the coalition called for immediate collaboration to block unlawful transactions that enable the widespread distribution of illegal vaping products, particularly to young people. Publicly traded companies in the tobacco space include Altria Group (MO), British American Tobacco (BTI), Imperial Brands (IMBBY) and Philip Morris (PM).
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Analyst Views on BTI
About BTI
British American Tobacco p.l.c. is a global multi-category consumer goods business company. The Company provides tobacco and nicotine products. Its segments include the United States, Asia Pacific Middle East and Africa, and Americas and Europe. Its product categories include Vapor, Heating Products (HPs), Modern Oral, Traditional Oral, and Combustible cigarettes. Vapor products are handheld, battery-powered devices that heat a liquid to produce an inhalable aerosol, known as vapor. HPs are devices that use heat to generate a nicotine-containing aerosol, which the user inhales. This category includes Tobacco Heated Products and Herbal Products for Heating (HPH). Modern Oral products are smoke-free oral nicotine products called nicotine pouches, designed for use in the mouth. Traditional oral products include snus and snuff. Its brands include Vuse, glo, Velo, Grizzly, Dunhill, Kent, Lucky Strike, Pall Mall, Rothmans, Newport, Natural American Spirit, Camel, and others.
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.
Altria Navigates Declining Tobacco Sales
- Sales Decline Trend: Barclays' latest analysis shows traditional cigarette volumes declined by 4.3% to 5.5% year-over-year, while Altria's decline was only 4.7%, indicating its relatively stable market performance.
- Competitor Performance: In comparison, British American Tobacco's volumes plummeted by 9.3% and Imperial Brands fell by 9%, highlighting Altria's stronger competitive position and ability to navigate market challenges more effectively.
- Alternative Product Growth: Despite the decline in traditional tobacco sales, nicotine pouch volumes surged by 22%, reflecting consumer interest in next-generation tobacco products, suggesting Altria has room for improvement in this area.
- Dividend Appeal: Altria remains an attractive income stock, drawing attention from investors seeking stable returns, even as it faces a shrinking traditional market, particularly appealing to dividend-focused investors.
See More
Tobacco Industry Sales Continue Decline
- Sales Volume Decline: According to Barclays, traditional cigarette sales volumes declined year-over-year by 4.3% to 5.5%, with a 5.1% drop in 2026 compared to 2025, although this was better than the expected 7.3% decline, indicating market resilience.
- Altria's Steady Performance: Altria Group's traditional cigarette volumes fell by 4.7%, which is significantly better than British American Tobacco's 9.3% drop and Imperial Brands' 9% decline, suggesting Altria is faring better than its competitors.
- New Product Growth: While traditional tobacco sales are declining, nicotine pouch sales surged by 22%, indicating market potential for certain next-generation products, although e-cigarette sales fell sharply by 17% year-over-year.
- Dividend Appeal: With a market cap of $110 billion and a dividend yield of 6.36%, Altria remains an attractive income stock for dividend-seeking investors, even as it distances itself from the shrinking traditional market.
See More
Key Wall Street Rating Changes Overview
- Intel Upgrade: Evercore ISI upgraded Intel from 'In Line' to 'Outperform', citing improved execution under the new CEO, who has fixed the balance sheet and put the company back on a competitive track, which is expected to drive stock price appreciation.
- Maxlinear Upgrade: Needham upgraded Maxlinear from 'Hold' to 'Buy' after the company reported a Q1 beat and guided Q2 well above Street expectations, indicating strong demand driven by data center growth, which could enhance future revenue.
- Shake Shack Initiation: Guggenheim initiated coverage on Shake Shack with a 'Buy' rating and a $120 price target, anticipating profit growth for the burger chain, reflecting positive market sentiment regarding its future performance.
- Oracle Initiation: Wedbush initiated coverage on Oracle with an 'Outperform' rating and a $225 price target, arguing that the market is fundamentally misinterpreting the company's aggressive investment cycle as speculative risk, which could lead to stock price increases.
See More
UK Passes Tobacco and Vaping Bill for Smokefree Generation
- Bill Passage: The UK House of Commons and House of Lords have unanimously passed the Tobacco and Vaping Bill, aimed at creating a 'smokefree generation' by permanently banning tobacco sales to anyone born on or after January 1, 2009, which will have profound implications for future smoking rates.
- Gradual Age Increase: The legislation stipulates that the legal age for tobacco sales will rise by one year each year starting in 2027, meaning that those currently 17 or younger will never be able to legally purchase cigarettes, significantly reducing tobacco consumption in the long term.
- New Regulatory Powers: The government will gain new powers to regulate the flavors, packaging, and advertising of vaping and other nicotine products, aimed at preventing these products from appealing to children, which is expected to have a major impact on marketing strategies.
- Impact on Tobacco Companies: The bill will significantly affect companies like British American Tobacco (BTI) and Imperial Brands (IMBBY), as their UK cigarette sales are expected to face structural erosion, putting long-term performance under pressure.
See More
British American Tobacco Shares Snap Losing Streak
- Stock Recovery: British American Tobacco (BTI) shares rose 0.9% to $56.62 on Friday, breaking a six-session losing streak, although the stock is down 3% over the past month, indicating market expectations for a short-term rebound.
- New Executive Appointment: The company announced Dragos Constantinescu as the new Chief Financial Officer and Executive Director effective September 1, 2026, aiming to strengthen financial management and enhance corporate governance to tackle future market challenges.
- Analyst Ratings: According to Seeking Alpha's Quant Rating, BTI holds a 3.2 Hold rating, achieving an A+ in profitability prospects but only a D+ in growth factors, reflecting cautious market sentiment regarding its growth potential.
- Wall Street Perspectives: Four analysts rated BTI as Strong Buy, while one analyst gave it a Hold recommendation and another suggested Strong Sell, highlighting divergent views in the market and the need for investors to carefully assess risks and rewards.
See More
Altria Raises Marlboro Prices by 3% Amid Market Pressures
- Pricing Strategy: Altria has raised prices by approximately 3% on its Marlboro brand in the U.S., aligning with its previously announced Marlboro differential pricing initiative aimed at adjusting prices based on specific SKU groupings to enhance market competitiveness.
- Market Reaction Analysis: Analysts noted that this price increase is sharper than previous ones, reflecting ongoing pressures on cigarette volumes, although it is not surprising as it follows Altria's typical quarterly pricing cadence.
- Brand Loyalty Impact: Despite potential downtrading pressures on consumers, Altria's Marlboro brand is expected to maintain customer loyalty due to its strong promotional activities and loyal customer base, particularly through products like Marlboro Special Select, Marlboro Black, and the new Marlboro Cowboy Cut.
- Industry Outlook: Investor concerns regarding the health of low-income consumers are being closely monitored, with expectations that Altria and British American Tobacco will face elasticity challenges in future price increases, while the overall industry is still anticipated to achieve strong net price realization.
See More
Altria Navigates Declining Tobacco Sales
- Sales Decline Trend: Barclays' latest analysis shows traditional cigarette volumes declined by 4.3% to 5.5% year-over-year, while Altria's decline was only 4.7%, indicating its relatively stable market performance.
- Competitor Performance: In comparison, British American Tobacco's volumes plummeted by 9.3% and Imperial Brands fell by 9%, highlighting Altria's stronger competitive position and ability to navigate market challenges more effectively.
- Alternative Product Growth: Despite the decline in traditional tobacco sales, nicotine pouch volumes surged by 22%, reflecting consumer interest in next-generation tobacco products, suggesting Altria has room for improvement in this area.
- Dividend Appeal: Altria remains an attractive income stock, drawing attention from investors seeking stable returns, even as it faces a shrinking traditional market, particularly appealing to dividend-focused investors.
See More
Tobacco Industry Sales Continue Decline
- Sales Volume Decline: According to Barclays, traditional cigarette sales volumes declined year-over-year by 4.3% to 5.5%, with a 5.1% drop in 2026 compared to 2025, although this was better than the expected 7.3% decline, indicating market resilience.
- Altria's Steady Performance: Altria Group's traditional cigarette volumes fell by 4.7%, which is significantly better than British American Tobacco's 9.3% drop and Imperial Brands' 9% decline, suggesting Altria is faring better than its competitors.
- New Product Growth: While traditional tobacco sales are declining, nicotine pouch sales surged by 22%, indicating market potential for certain next-generation products, although e-cigarette sales fell sharply by 17% year-over-year.
- Dividend Appeal: With a market cap of $110 billion and a dividend yield of 6.36%, Altria remains an attractive income stock for dividend-seeking investors, even as it distances itself from the shrinking traditional market.
See More
Key Wall Street Rating Changes Overview
- Intel Upgrade: Evercore ISI upgraded Intel from 'In Line' to 'Outperform', citing improved execution under the new CEO, who has fixed the balance sheet and put the company back on a competitive track, which is expected to drive stock price appreciation.
- Maxlinear Upgrade: Needham upgraded Maxlinear from 'Hold' to 'Buy' after the company reported a Q1 beat and guided Q2 well above Street expectations, indicating strong demand driven by data center growth, which could enhance future revenue.
- Shake Shack Initiation: Guggenheim initiated coverage on Shake Shack with a 'Buy' rating and a $120 price target, anticipating profit growth for the burger chain, reflecting positive market sentiment regarding its future performance.
- Oracle Initiation: Wedbush initiated coverage on Oracle with an 'Outperform' rating and a $225 price target, arguing that the market is fundamentally misinterpreting the company's aggressive investment cycle as speculative risk, which could lead to stock price increases.
See More
UK Passes Tobacco and Vaping Bill for Smokefree Generation
- Bill Passage: The UK House of Commons and House of Lords have unanimously passed the Tobacco and Vaping Bill, aimed at creating a 'smokefree generation' by permanently banning tobacco sales to anyone born on or after January 1, 2009, which will have profound implications for future smoking rates.
- Gradual Age Increase: The legislation stipulates that the legal age for tobacco sales will rise by one year each year starting in 2027, meaning that those currently 17 or younger will never be able to legally purchase cigarettes, significantly reducing tobacco consumption in the long term.
- New Regulatory Powers: The government will gain new powers to regulate the flavors, packaging, and advertising of vaping and other nicotine products, aimed at preventing these products from appealing to children, which is expected to have a major impact on marketing strategies.
- Impact on Tobacco Companies: The bill will significantly affect companies like British American Tobacco (BTI) and Imperial Brands (IMBBY), as their UK cigarette sales are expected to face structural erosion, putting long-term performance under pressure.
See More
British American Tobacco Shares Snap Losing Streak
- Stock Recovery: British American Tobacco (BTI) shares rose 0.9% to $56.62 on Friday, breaking a six-session losing streak, although the stock is down 3% over the past month, indicating market expectations for a short-term rebound.
- New Executive Appointment: The company announced Dragos Constantinescu as the new Chief Financial Officer and Executive Director effective September 1, 2026, aiming to strengthen financial management and enhance corporate governance to tackle future market challenges.
- Analyst Ratings: According to Seeking Alpha's Quant Rating, BTI holds a 3.2 Hold rating, achieving an A+ in profitability prospects but only a D+ in growth factors, reflecting cautious market sentiment regarding its growth potential.
- Wall Street Perspectives: Four analysts rated BTI as Strong Buy, while one analyst gave it a Hold recommendation and another suggested Strong Sell, highlighting divergent views in the market and the need for investors to carefully assess risks and rewards.
See More
Altria Raises Marlboro Prices by 3% Amid Market Pressures
- Pricing Strategy: Altria has raised prices by approximately 3% on its Marlboro brand in the U.S., aligning with its previously announced Marlboro differential pricing initiative aimed at adjusting prices based on specific SKU groupings to enhance market competitiveness.
- Market Reaction Analysis: Analysts noted that this price increase is sharper than previous ones, reflecting ongoing pressures on cigarette volumes, although it is not surprising as it follows Altria's typical quarterly pricing cadence.
- Brand Loyalty Impact: Despite potential downtrading pressures on consumers, Altria's Marlboro brand is expected to maintain customer loyalty due to its strong promotional activities and loyal customer base, particularly through products like Marlboro Special Select, Marlboro Black, and the new Marlboro Cowboy Cut.
- Industry Outlook: Investor concerns regarding the health of low-income consumers are being closely monitored, with expectations that Altria and British American Tobacco will face elasticity challenges in future price increases, while the overall industry is still anticipated to achieve strong net price realization.
See More
