Bank Of America Bullish On Shares Of Altria Group Inc

Analysts at Bank of America upgraded shares of Altria Group Inc MO to a Buy rating and raised the price target to $50.

Analysts find the tobacco industry is currently in good position as a whole; Lisa Lewandowski highlighted several reasons why shares of Altria Group offer potential upside:

• U.S. cigarette volumes remain in decline, but not accelerating.
• Price/mix appears rational and we believe will likely remain post the RAI/LO/IMT transaction.
• Marlboro continues to win modest share.
• Industry accruals to growers come to an end in Q3 2014, freeing up ~$400 million annually for Altria.
• Regulation, taxation and litigation remains manageable and slow to materialize.

Shares of Altria Group closed Thursday at $45.11.