Citi ups Altria Group target, opens ‘negative catalyst watch’

Citi raised the firm’s price target on Altria Group to $48 from $44.50 and keeps a Neutral rating on the shares. The ongoing challenging backdrop for combustibles is likely to weigh on the company’s Q3 delivery, the analyst tells investors in a research note. The firm trimmed its Q3 U.S. combustible volume estimates, leaving it below consensus, but increased the price target to reflect the “market rotation towards defensives.” Citi also opened a “90-day negative catalyst watch” on shares of Altria Group. Although management will likely reiterate the company’s fiscal year guidance metrics at the Q3 print, the “lackluster” quarter combined with the strong overall performance of the stock through Q3 means that “in the absence of another major rotation towards defensives, we expect the shares may drift back in the coming weeks,” the firm writes.