Stock Price & Analysis

Based on the recent data and market analysis, here's a concise assessment of MO stock:

Technical Analysis The stock shows a bearish trend with RSI at 42.90, indicating neutral momentum but leaning towards oversold territory. The stock is trading below its 20-day SMA of $52.22 and 60-day SMA of $53.80, suggesting short-term weakness.

Recent Analyst Actions Morgan Stanley recently initiated coverage with an Equal Weight rating and $54 price target, suggesting limited upside potential of 5.5% from current levels. However, B of A Securities upgraded the stock to Strong Buy with a $65 target in December, indicating more significant upside potential.

Key Concerns The Biden administration's proposed nicotine reduction rule poses a regulatory risk, though the incoming Trump administration is not expected to continue this initiative. The company faces elevated smokable volume declines and has a limited reduced-risk portfolio.

Recommendation SELL at current levels around $51.86. The technical indicators show weakness, and while there's mixed analyst sentiment, the regulatory uncertainties and declining core business suggest better opportunities elsewhere.

Based on the latest data and analyst insights, Altria Group (MO) stock is projected to reach $54.38 by the end of 2025, representing a 5.9% upside from current levels, supported by analysts' consensus and Morgan Stanley's recent Equal-Weight rating [2,3]. The company's strong performance in smoke-free alternatives and cost-saving initiatives, coupled with its robust distribution network and profitable cigarette segment, provides a stable foundation for this price target. However, potential regulatory headwinds, including the Biden administration's nicotine reduction plans, could create some uncertainty, though the incoming administration is not expected to pursue these restrictions.

The S1 support level for MO Stock is $50.71 ,The R1 resistant level for MO Stock is $51.96.

As of the end of day on 2025-01-24, the price of MO Stock was $52.09.

The target price for MO Stock according to analyst rating is 53.00, with the highest price target at 60.00 and the lowest at 42.00. Analysts have a Moderate Buy rating on MO Stock overall.

The market cap of MO is $88.2B.

Based on the provided data, here's a concise analysis of MO's valuation:

MO currently appears fairly valued considering multiple metrics. The stock trades at a P/E ratio of 8.63x (Q3 2024), which is relatively low compared to the broader market, reflecting the tobacco industry's mature nature and regulatory risks.

The company maintains strong profitability with a gross margin of 70.86% and net margin of 42.91% in Q3 2024, demonstrating efficient operations despite industry headwinds.

Recent analyst actions show mixed sentiment, with Morgan Stanley initiating coverage at Equal Weight with a $54 target, while BofA upgraded to Buy with a $65 target, suggesting potential upside from current levels.

The Biden administration's proposed nicotine reduction rule poses a regulatory risk, though the incoming administration is not expected to continue this initiative, providing some near-term relief for the stock.

Technical indicators show RSI at 42.90 and negative MACD (-0.86), suggesting slight bearish momentum in the near term, with the stock trading below both its 20-day (52.22) and 60-day (53.80) moving averages.

Altria Group, Inc. is a holding company, which provides a portfolio of tobacco products for United States tobacco consumers aged 21+. Its segments include smokeable products, oral tobacco products, and all other. The smokeable products segment includes of combustible cigarettes manufactured and sold by Philip Morris USA Inc. (PM USA), and machine-made large cigars and pipe tobacco manufactured and sold by Middleton. The oral tobacco products segment consists of moist smokeless tobacco (MST) and snus products manufactured and sold by U.S. Smokeless Tobacco Company LLC (USSTC), and oral nicotine pouches manufactured and sold by Helix Innovations LLC (Helix). The oral tobacco products segment includes the premium brands, Copenhagen and Skoal, and Red Seal. It also includes on! oral nicotine pouches. The Company’s e-vapor products are marketed by NJOY, LLC (NJOY), a wholly owned subsidiary of the Company. Its tobacco subsidiaries sell their tobacco products principally to wholesalers.

Based on the provided data and market analysis, Altria Group (MO) stock is projected to reach approximately $65-70 by 2030, driven by its strategic investments in smoke-free alternatives and strong distribution network. The company's focus on oral tobacco products and nicotine pouches markets, coupled with its cost-saving initiatives, positions it well for sustained growth despite regulatory challenges. However, potential headwinds from the Biden administration's nicotine reduction plans could impact growth, though the incoming administration is not expected to continue this initiative.

MO has a total of 6400 employees.