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Investing.com - BofA Securities raised its price target on Altria (NYSE:MO) to $64.00 from $63.00 on Wednesday, while maintaining a Buy rating on the tobacco company’s stock. The stock, currently trading at $61.51, is near its 52-week high of $61.26, showing strong momentum. According to InvestingPro analysis, Altria’s overall financial health score is "GREAT," supported by impressive gross profit margins of 71%.
The price target increase follows Altria’s second-quarter results, which showed net sales were essentially flat, increasing just 0.2% to $5.3 billion. The company demonstrated operational resilience despite continued high levels of illicit trade and economic challenges. Trading at an attractive P/E ratio of 10.25, Altria maintains its position as a dividend powerhouse with a 6.87% yield and a 55-year streak of consistent dividend payments. For deeper insights into Altria’s valuation and future prospects, check out the comprehensive analysis available on InvestingPro, which features 13 additional key insights about the company.
Lower cigarette and moist smokeless tobacco volumes were offset by strong pricing, favorable product mix, and growth in nicotine pouches, according to BofA Securities’ analysis of the quarterly performance.
Altria management narrowed its earnings per share guidance to $5.35-5.45, representing 3-5% growth, from its previous guidance range of $5.30-5.45. The company expects second-half growth to slow as it begins lapping last year’s accelerated buyback program and as benefits from the Master Settlement Agreement legal fund end.
BofA Securities maintained its 2025 earnings per share estimate for Altria at $5.43, while increasing its 2026 estimate by one cent to $5.68.
In other recent news, Altria Group reported its second-quarter 2025 earnings, surpassing analysts’ expectations. The company achieved an adjusted diluted earnings per share (EPS) of $1.44, exceeding the forecasted $1.38. Altria’s revenue also impressed, reaching $6.1 billion, which was significantly higher than the anticipated $5.2 billion. These results reflect a strong performance for the company in this period. Additionally, the positive earnings report has caught the attention of investors and analysts alike. While the company’s stock showed a slight increase in pre-market trading, the focus remains on Altria’s financial achievements. The company’s ability to exceed expectations in both earnings and revenue highlights its current market strength. These developments are crucial for investors considering Altria’s financial health and future prospects.
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