Altria: Time For An Entry Point

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About: Altria Group, Inc. (MO)
by: Penny Wiser
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Penny Wiser
Long only, special situations, long-term horizon, event-driven
Summary

Altria's share price has taken a tumble primarily on account of JUUL markdown, regulatory overhang as well as muted guidance on cigarette volumes.

The company has shifted its focus on IQOS and On! to be the next future engines for growth.

While near term growth pangs persist, the company has a stable outlook over the medium term with a fairly attractive dividend policy. Initiate at Buy.

Altria’s (MO) investment thesis is on the back of its consistent ability to deliver stable EPS growth with a highly attractive dividend yield. However, the company’s core cigarette business is being disrupted by