Barclays Raises Altria (MO) Price Target on Potential Sector Re-Rating Opportunity

On May 15, Barclays raised its terms proposal connected Altria Group, Inc. (NYSE:MO) to $64 from $63. It reiterated an Underweight standing connected the stock. The steadfast said the latest FDA guidance could pb to much innovation crossed the baccy sector. Barclays believes that could accelerate maturation successful next-generation products and perchance thrust a re-rating of baccy stocks.

During the Q1 2026 net call, CEO William Gifford described the 4th arsenic a beardown commencement to the year. He said adjusted diluted EPS accrued 7.3% and noted that Altria’s highly cash-generative businesses continued supporting important shareholder returns done dividends and stock repurchases.

Speaking astir oral nicotine pouches, Gifford pointed to continued class maturation and the wider rollout of on! PLUS. He said reported shipment measurement for the wide on! portfolio climbed astir 18% to much than 46 cardinal cans. He besides noted that on! and on! PLUS unneurotic represented 7.8% of the full oral baccy category. That fig was down 0.8 percent points from the anterior twelvemonth but improved 0.2 percent points sequentially.

Gifford added that on! PLUS started shipping nationwide successful March and, by the extremity of the quarter, was disposable successful astir 100,000 stores. According to him, that represented 85% of the nicotine pouch class volume.

Altria Group, Inc. (NYSE:MO) operates a portfolio of baccy products for U.S. baccy consumers aged 21 and older. Its concern is organized into smokeable products and oral baccy products. The smokeable products conception includes combustible cigarettes and machine-made ample cigars.

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