Stifel Nicolaus Reiterates Buy, $29 Target on Altria Group
Stifel Nicolaus maintains its Buy rating and $29 target price on Altria Group, Inc. (NYSE: MO) as adverse litigation rulings lead to one-time charge.
Stifel says, “Altria reported on late Friday that it will take a charge in its upcoming fourth quarter earnings report to reflect two adverse litigation rulings (Williams and Bullock) which it will now exclude from its reported earnings (we previously included a small $0.01 charge from the Scott case in 2Q11 so we are adjusting our previous earnings figures to reflect this change in accounting for adverse litigation payments), it will receive $0.02 in EPS benefit from tax favorability (excluded as well from EPS), and it will absorb a loss in its leasing division due to American Airlines' recent bankruptcy filing (this is included in our EPS estimate now in 4Q11).”
MO closed at $28.41 per share on Friday.
