Wells Fargo Discusses Earnings From Altria

Wells Fargo is out with a research report on Altria (NYSE: MO) after it reported earnings. It has a $26-$28 valuation on the stock.

In a note to clients, Wells Fargo writes, "MO reported underlying 2Q EPS of $0.53, or 4.8% growth. MO also reaffirmed its full year EPS guidance of $2.01 -$2.07. We are increasing our FY11 & FY12 EPS estimates by $0.01 to $2.04 & $2.18, respectively. We maintain our Market Perform rating. Despite the recent weakness in MO's share price, we continue to recommend investors stay on the sidelines and believe the stock could be range bound in the near to intermediate term until there are signs of improving retail share trends for Marlboro."

Shares of MO closed at $26.37 yesterday.