Altria (MO) PT Raised to $47 at Goldman Sachs
Goldman Sachs analyst Bonnie Herzog raised the price target on Altria (NYSE: MO) to $47.00 (from $46.00) while maintaining a Buy rating.
The analyst comments "Our View - We adjust our EPS estimates following the pricing today of MO's offering of ABI stock at $62.50 per ADS (EUR56.17 per ABI ordinary share), valued at ~$2.4B inclusive of ABI's repurchase of $200M ordinary shares directly from MO. Concurrent with the pricing, MO raised its FY24 EPS guidance and announced a $2.4B accelerated share repurchase (ASR) program which is additive to its existing $1B share repurchase program, both expected to be completed by year-end. As a result, we raise our FY24/FY25 EPS estimates and raise our price target by $1, to $47. Overall, we view MO as a high-quality asset given its hugely cash-generative tobacco business, strong balance sheet and commitment to shareholder returns. Given MO's attractive valuation, we maintain our Buy rating."