UPDATE: Jefferies Initiates Hold, $30 PT on Altria Group

Jefferies initiates a Hold rating with a $30 price target on Altria Group (NYSE: MO) as it believes equity valuation is currently at fair levels.

Jefferies says, "Altria's equity in our view is fairly valued, given our concerns about the growth outlook for Marlboro (ca. 75% of profits) and a slowdown of smokeless growth. At the same time, the company offers a strong dividend (5.6% yield), income benefits from the SABMiller stake and good growth of the much smaller wine and cigar businesses."

MO closed at $29.27 a share on Wednesday.