Altria (NYSE:MO) Gains Buy Rating Boosted by Regulatory Tailwinds and Tobacco Sector Strength

Altria Group, Inc. (NYSE:MO) ranks among the best stocks to buy for retirement. BofA Securities reiterated its Buy rating on Altria Group, Inc. (NYSE:MO), and raised its price target for the company’s shares from $64 to $72 on August 22. The price target rise coincides with the fact that tobacco and nicotine stocks have performed substantially better than the overall market this year, with the S&P 500 Tobacco index up 40% so far.

According to BofA Securities, a number of factors contributed to the tobacco sector’s recovery, including the March 2024 ruling to postpone the menthol ban and the Republican-dominated national election, which eased the regulatory environment for tobacco companies.

Other factors supporting Altria’s profitability include its absence of tariff vulnerability, ongoing cost optimization projects, and reports indicating progress in lowering illegal trade at ports of entry, although data collected by scanners has yet to reflect these gains.

Altria Group, Inc. (NYSE:MO) is a prominent American company that produces and markets tobacco, cigarettes, and associated products on a global scale. The firm has also ventured into next-generation nicotine products, such as oral nicotine pouches and electronic vaping devices.

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Disclosure: None. This article is originally published at Insider Monkey.