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Altria Extends 2026 Rally as Barclays Lifts Target and EPS Outlook Is Reaffirmed

Pricing power, rising cash flow, rich dividend support offset concerns over falling cigarette volumes.

Overview

  • Shares rose 11.4% in February and are up about 20% year to date excluding dividends, with the stock trading around a 16.55 P/E and a 6.1% yield.
  • The quarterly dividend increased to $1.06 as free cash flow per share reached roughly $5.40 over the last 12 months.
  • A decade of repurchases has cut shares outstanding by about 14.5%, reinforcing per-share cash metrics and capital returns.
  • Cigarette volumes fell about 10% in fiscal 2025, but pricing limited smokeable net revenue decline to 1.5% and nudged operating earnings higher.
  • Barclays raised its price target to $63 while keeping Underweight, and Altria reaffirmed 2026 EPS guidance of $5.56–$5.72 with growth weighted to the second half and the assumption that NJOY ACE does not return in 2026.