(Updated - July 28, 2017 11:00 AM EDT)

Philip Morris (NYSE: PM), Altria Group (NYSE: MO) and British American Tobacco (NYSE: BTI) are under pressure following comments that the FDA may likely pursue cutting nicotine in cigarettes to "nonaddictive". Following the news, Cowen analysts believes PM is the least exposed to the news. Meanwhile Jefferies analysts Owen Bennett sees the news as a positive for future profit growth noting this could lead to positive volume growth in vapour and also the possibility of more favorable tax treatment that currently being experienced.

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