Report
Philip Gorham, CFA, FRM
EUR 100.00 For Business Accounts Only

Altria Misses in 4Q, but Tax Reform Pushes Our Valuation Up by 8%.

Altria missed our sales forecasts in the fourth quarter due to weak cigarette volumes. As we had anticipated, the entry of Imperial Brands into the U.S appears to be increasing the level of competition, and we expect Altria to increase investment in its customer acquisition costs over the next few years. Nevertheless, we are raising our fair value estimate to $64 from $59 to account for the material benefit from the reduction in the U.S. federal tax rate from 2018, and we consider Altria to be m...
Underlying
Altria Group Inc

Altria Group is a holding company. The company's subsidiaries include: Philip Morris USA Inc., which is engaged in the manufacture and sale of cigarettes; John Middleton Co., which is engaged in the manufacture and sale of machine-made cigars and pipe tobacco; Sherman Group Holdings, LLC and its subsidiaries, which are engaged in the manufacture and sale of cigarettes and the sale of cigars; and UST LLC, which through its subsidiaries, including U.S. Smokeless Tobacco Company LLC and Ste. Michelle Wine Estates Ltd., is engaged in the manufacture and sale of smokeless tobacco products and wine. The products of the company's tobacco subsidiaries include smokeable tobacco products and machine-made cigars.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Philip Gorham, CFA, FRM

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