Trump Tailwinds Could Take Altria Group Stock To $100

Summary:

• Altria Group, Inc. has delivered over 50% returns this year, driven by strong adoption of non-smokable products and favorable valuation expansion.
• The Trump administration’s policies, including cracking down on illegal imports and pro-working class measures, are expected to benefit Altria.
• Altria’s valuation remains compelling with a target price of $98.47, suggesting a 40% upside, supported by a simple DCF model.
• Despite regulatory challenges, Altria’s pivot to non-smokable products positions MO stock well for long-term growth, justifying a Buy rating.

Thesis Summary

Altria Group, Inc. (NYSE:MO) has had a great year, delivering over 50% returns and outperforming the S&P 500 (SP500).

The company has benefitted from the strong adoption of its non-smokable products, and the valuation has expanded.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of MO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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