Needham analyst Gerald Pascarelli has reiterated their neutral stance on MO stock, giving a Hold rating on July 22.
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Gerald Pascarelli has given his Hold rating due to a combination of factors influencing Altria Group’s current market position. The company reported a strong quarter, surpassing expectations in both revenue and earnings per share, while also adjusting its guidance towards the higher end of the spectrum. This positive performance was largely driven by strategic initiatives and distribution expansion, which helped improve discount volumes and smokable margins through effective pricing strategies and reduced fees.
Despite these positive developments, Pascarelli remains cautious about certain challenges facing Altria. There is ongoing pressure from low-income consumers and a competitive landscape in nicotine pouches, as well as volume pressures in premium smokables. While the 2025 guidance appears achievable, these factors contribute to the decision to maintain a Hold rating, reflecting a balanced view of potential risks and opportunities for the company.
Pascarelli covers the Consumer Defensive sector, focusing on stocks such as Celsius Holdings, Altria Group, and Philip Morris. According to TipRanks, Pascarelli has an average return of 0.0% and a 42.31% success rate on recommended stocks.
In another report released on July 22, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $64.00 price target.