1 Wall Street Analyst Thinks Altria Stock Is Going to $65. Is It a Buy?

Core Viewpoint - Altria is a controversial stock due to its tobacco production, but its strong financial performance and high dividend yield attract investors [1] Group 1: Analyst Upgrade - Bank of America's analyst Lisa Lewandowski upgraded Altria from neutral to buy and raised the target price from $55 to $65, indicating a nearly 19% upside from the stock's closing price on December 11 [2][3] Group 2: Factors Influencing Upgrade - The analyst believes that the incoming Republican administration will implement favorable policies for Altria, including tariffs on foreign producers and potential corporate tax cuts [4] - Improved economic prospects for lower-income consumers could enhance the convenience retail sector, benefiting Altria as convenience stores are significant sellers of tobacco products [5] - The market has not fully accounted for the benefits of Altria's management cost-cutting program [5] Group 3: Industry Challenges - A significant challenge for Altria is the ongoing decline in cigarette smoking in major markets like the U.S., despite some growth in next-generation products like vaping [6][7] - The popularity of vaping products has not yet matched that of traditional cigarettes, necessitating continued efforts to convince investors of the future potential of these goods [7]