Altria Group assumed with an Underperform at Jefferies

Jefferies analyst Edward Mundy assumed coverage of Altria Group (MO) with an Underperform rating and $50 price target The firm assumed coverage of global tobacco with a positive view. Within staples, Jefferies’ favored sectors are tobacco, beer and consumer health. It estimates global nicotine will post low-single-digit growth from combustibles and next generation products. The analyst’s top pick is British American. Jefferies cites structural headwinds and a “demanding valuation” for the Underperform rating on Altria.