Street View: Altria could see further weakness if inflation persists

JAPAN TOBACCO

28/10/2022 16:41

** Marlboro maker Altria Group Inc  MO.N  on Thursday missed
quarterly earnings estimates, and narrowed its full-year
earnings outlook, while announcing a strategic partnership with
Japan Tobacco  2914.T  in an attempt to boost its smoke-free
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    INFLATION PRESSURES
    ** BofA Global Research ("neutral", PT:$48) does not expect
any near-term acceleration of company's business and may even
see further weakness if inflationary pressures weigh on
consumers
    ** Cowen and Co ("market perform", PT:$45) says Altria's
partnership with Japan Tobacco makes good sense, as there are
minimal competitive sensitivities
    ** RBC Capital Markets ("sector perform", PT:$50) says the
brokerage remains worried about the impact of inflation on
lower-income consumers and that led to weak cigarette volumes
for company as well as market share losses
    ** UBS ("neutral", PT:$43) says it sees better risk/reward
from rivals Imperial Brands  IMB.L  and British American Tobacco
 BATS.L 
 (Reporting by Roshan Abraham in Bengaluru)
 ((Roshan.Abraham@thomsonreuters.com))