Update shared on27 Aug 2025
Fair value Increased 2.03%Analysts raised Altria Group’s price target to $62.88, citing its increased dividend, improving regulatory outlook, and sustained earnings through pricing power, while some concerns remain over structural industry headwinds and growth limitations.
Analyst Commentary
- Altria’s recent dividend increase and consistent track record of annual dividend growth support confidence in its capital return program.
- Bullish analysts cite Altria’s emergence from regulatory uncertainty and more favorable regulatory oversight as catalysts for a higher valuation multiple.
- The company’s “Optimize and Innovate” program and pricing power are expected to sustain earnings and shareholder returns through 2025.
- Nicotine stocks’ relative outperformance is viewed as an ongoing tailwind for Altria's share price.
- Bearish analysts highlight structural headwinds, what they see as a demanding valuation, and limited expected growth from both combustibles and next-generation products.
What's in the News
- The FDA has authorized Juul Labs' original vaporizer and select cartridges to remain on the U.S. market, impacting major tobacco companies including Altria Group. (WSJ)
- Altria Group's board approved a 3.9% increase in its regular quarterly dividend to $1.06 per share, raising the annualized yield to 6.3% based on the latest share price, effective for shareholders of record as of September 15, 2025. (Key Developments)
- Barclays Capital, J.P. Morgan Securities, Citigroup Global Markets, and Goldman Sachs were added as co-lead underwriters for Altria Group's $497.2 million fixed-income offering. (Key Developments)
- Between April 1 and June 30, 2025, Altria repurchased 4.67 million shares for $273.7 million, bringing its total buybacks under the current program to 10.4 million shares (0.62% of shares outstanding) for $599.95 million. (Key Developments)
- Recent developments showcase Altria's focus on enhancing shareholder value through dividend increases and ongoing share repurchase programs. (Key Developments)
Valuation Changes
Summary of Valuation Changes for Altria Group
- The Consensus Analyst Price Target has risen slightly from $61.62 to $62.88.
- The Future P/E for Altria Group has risen slightly from 13.30x to 13.82x.
- The Discount Rate for Altria Group remained effectively unchanged, moving only marginally from 7.72% to 7.67%.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.