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Philip Morris, Altria up more than 1% on upgrades

Published 01/19/2018, 08:30 AM
© Reuters.  Philip Morris, Altria up more than 1% on upgrades
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  • Analyst Owen Bennett is bullish on the tobacco sector, seeing total returns over the next 12 months of 15% topping that of consumer staples by 500 basis points.
  • Keys: Reduced risk product (RRP) segment development, possible M&A, increasing bond yields, and forex changes being a tailwind after years of headwinds.
  • He upgrades Philip Morris (NYSE:PM) to Buy, with next week's Tobacco Products Scientific Advisory Committee review being a possible immediate catalyst.
  • He also upgrades Altria (NYSE:MO) to Buy, betting the company can halt the recent market share decline for Marlboro.
  • British American Tobacco (NYSEMKT:BTI) remains his Top Pick.
  • PM and MO are up 1.1% premarket; BTI +0.6%
  • Source: Bloomberg
  • Now read: Dividend Growth Machine For 2018


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