Altria Group price target lowered to $61 from $68 at UBS

UBS analyst Faham Baig lowered the firm’s price target on Altria Group (MO) to $61 from $68 and keeps a Neutral rating on the shares. Altria reported better-than-expected cigarette volumes in Q3, driven by the significantly lower priced Basic brand that impacted Smokeable price and mix, which shouldn’t intensify price competition, as Altria is likely to remain targeted in its approach to avoid accelerating downtrading, the analyst tells investors in a research note. UBS expects a step- up in the benefit from duty drawbacks that could provide Altria with greater flexibility to deliver mid-single digit EPS growth over three years.