Bank of America Trims Altria (MO) Target While Keeping Buy Rating

Altria Group, Inc. (NYSE:MO) is included among the Best Stocks for a Dividend Achievers List.

On December 19, Bank of America analyst Lisa Lewandowski lowered the firm’s price target on Altria Group, Inc. (NYSE:MO) to $64 from $66. She kept a Buy rating on the shares. Looking toward 2026, Lewandowski said the biggest open issue for consumer staples remains consumption growth. Valuations across the sector remain uneven. In her year-ahead note, she added that “there feels little to get them off the sidelines in ’26 until fundamentals signal a greater turning of the tide.”

For Altria Group, Inc. (NYSE:MO), fundamentals have held up better than volumes might suggest. Cigarette shipments continue to decline, and the company has been able to raise prices enough to offset much of the volume pressure. Tobacco users tend to be sticky. Some trade down to cheaper brands, but many stay with what they know and absorb the higher cost. That dynamic has helped keep revenue and earnings relatively stable.

The dividend remains the core of the investment case. Altria Group, Inc. (NYSE:MO)’s payout is large and consistent, which naturally raises questions when volumes fall. If price increases ever stop covering the gap, pressure would build. For now, that risk appears contained. Cash flow remains solid, and earnings still support the payout. The company targets a payout ratio of about 80% of adjusted earnings per share. Adjusted EPS removes one-time items and gives a clearer view of recurring operating performance. That framework provides some flexibility, even in a slow-growth environment.

Altria Group, Inc. (NYSE:MO) has a portfolio of well-known tobacco brands, including Marlboro, Black & Mild, Copenhagen, Skoal, and Virginia Slims.

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Disclosure: None.