Altria: Menthol Win And Growing NJOY Market Share Deserve To Be Celebrated

Summary:

  • MO has been handsomely rewarded for the US FDA marketing approval of NJOY’s menthol-flavored e-cigarette products, with the acquisition highly accretive to its existing tobacco portfolio.
  • The management has submitted NJOY ACE 2.0 device with access restriction technology, along with the resubmissions for blueberry and watermelon pod products that work exclusively with the 2.0 device.
  • This is on top of the robust QoQ/ YoY growth in MO’s oral tobacco pouches sale, on!, with H2’24 likely to bring forth similarly great numbers, attributed to Zyn’s shortage.
  • These developments have triggered the raised FY2024 adj EPS midpoint guidance, leading to the stock’s upgraded P/E valuations.
  • We shall further discuss why MO continues to offer a compelling investment thesis for investors seeking capital appreciation and dividend incomes.
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Gorlov

We previously covered Altria (NYSE:NYSE:MO) in May 2024, discussing its mixed performance in the Smokeable/ Smoke-free segments and recommending readers to remain patient given its nascent transition to smoke-free approaches.

With NJOY already reporting growing retail share and H2’24 likely


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