Vector Group Seems Promising Despite Regulatory Risks

Sep. 03, 2023 11:19 PM ETVector Group Ltd. (VGR) StockVGR4 Comments
Caffital Research
1.62K Followers

Summary

  • Vector Group manufactures and sells cigarettes and also invests in real estate through apartment buildings, hotels, and commercial properties on the side.
  • The company has a strong growth history and high profit margins, making it an attractive investment option.
  • Despite regulatory risks in the tobacco industry, my discounted cash flow model suggests a moderate upside for VGR, supporting a buy rating for the stock.

Cigarettes with a filter lie in one heap

Snezhana Kudryavtseva

Vector Group (VGR) manufactures and sells cigarettes. As an odd addition, the company also invests into real estate through apartment buildings, hotels, and commercial real estate. With a historically quite stable growth and incredibly high margins, the company seems like a good quality

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