Altria (MO) Valuation Check After FDA Clears on! PLUS Nicotine Pouches and Leadership Succession Plans

The U.S. Food and Drug Administration just cleared six on! PLUS nicotine pouch products for Altria Group (NYSE:MO), giving its smoke free portfolio fresh momentum as the company prepares for an orderly CEO and CFO transition.

See our latest analysis for Altria Group.

At around $58.98, Altria’s recent 30 day share price return of 2.88 percent contrasts with a softer 90 day share price return of negative 9.53 percent. Its five year total shareholder return of 109.89 percent suggests long term momentum remains firmly intact despite leadership changes and the latest FDA green light for on! PLUS.

If this kind of regulated income story appeals, you might also want to see which other pharma stocks with solid dividends are offering sizable payouts backed by resilient cash flows.

With a near 44 percent intrinsic discount estimate, a modest premium to analyst targets and fresh smoke free catalysts, is Altria quietly undervalued here, or are investors already paying up for its next leg of earnings growth?

Most Popular Narrative Narrative: 7.6% Undervalued

With Altria closing at $58.98 against a narrative fair value of $63.83, the story points to modest upside supported by stable cash generation.

The analysts have a consensus price target of $58.538 for Altria Group based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $73.0, and the most bearish reporting a price target of just $49.0.

Read the complete narrative.

Curious how flat revenues, easing margins and a higher future earnings multiple can still add up to upside potential? The narrative’s math might surprise you.

Result: Fair Value of $63.83 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that upside could unravel if illicit e vapor remains dominant or if regulatory setbacks further squeeze NJOY volumes and undercut Altria’s reduced risk transition.

Find out about the key risks to this Altria Group narrative.

Build Your Own Altria Group Narrative

If the conclusions above do not fully align with your view, or you prefer hands on research, you can build your own narrative in just a few minutes: Do it your way.

A great starting point for your Altria Group research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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