UPDATE: Bank of America Downgrades Altria Group to Neutral; Stock Approaches Price Objective

Bank of America downgraded Altria Group

from Buy to Neutral and raised the price objective from $35.00 to $36.00. Bank of America commented, "While we continue to see EPS flexibility relative to MO's guidance, including contributions from lower interest expense, the stock is +10.2% YTD (vs. S&P 500 up 4.3%), and the market seems to be discounting a relatively benign competitive environment in cigarettes in 2013. Stronger 2013 pricing is certainly a possibility, but there are risks to the story, in our view. The MSA disputed payments settlement affords RAI 23c p/s in EPS flex to reinvest as necessary, creating at least some potential for a continuation of discounting ahead of the long-term trend line as 2013 unfolds." Altria Group closed at $34,65 on Monday.