-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Following MO's Q1 earnings release, we raise our estimates and price target but maintain our Sell rating on the stock. We raise our 12-month price target by $10 to $60, based on a 2027 P/E of 10.3x, a slight premium to its five-year mean forward P/E of 10.0x. We are also increasing our adjusted EPS estimates by $0.05 to $5.70 for 2026 and by $0.05 to $5.80 for 2027. MO posted Q1 adjusted EPS of $1.32 vs. $1.23 (+7%). This result was well ahead of the $1.25 consensus. Net revenue rose 5.3% to $4.76B ($180M above consensus) as higher price realizations fully offset lower volumes, which declined 2.3% for smokable products and 3.1% for oral tobacco. While MO maintained 2026 adjusted EPS guidance of $5.56-$5.72, we now see its earnings coming in toward the higher end of the range. Still, MO's earnings release confirmed our concerns regarding market share declines in its on! nicotine pouch product (retail share down 80 bps Y/Y to 7.8% in Q1). Therefore, we continue to view the stock's risk/reward as unfavorable.