UPDATE: Argus Downgrades Altria (MO) to Hold
Argus analyst David Coleman downgraded Altria (NYSE: MO) from Buy to Hold.
The analyst comments "We are lowering our rating on Altria Group Inc. (NYSE: MO) to HOLD from BUY. The company manufactures and sells cigarettes, smokeless tobacco products, and alcoholic beverages in the United States and abroad. Altria has been growing through investments in companies with products that diversify its portfolio, including the purchase of a 45% stake in Cronos Group, a Canadian cannabinoid producer, and a 35% stake in popular e-cigarette maker JUUL Labs. The company also pays a solid dividend with a yield of about 7%. However, Altria has seen a sharp decline in the value of its JUUL investment, and is facing increased legislative and regulatory risks. In particular, the FDA recently said that it planned to ban menthol cigarettes, and was considering rules that would reduce cigarette nicotine to nonaddictive levels. In addition, the Biden administration may raise excise taxes on cigarettes."
Shares of Altria closed at $48.00 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Downgrades
Related EntitiesArgus, FDA
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