Barclays Raises Altria (MO) Price Target on Potential Sector Re-Rating Opportunity

Vardah Gill

Wed, May 20, 2026 at 7:43 AM EDT 2 min read

Altria Group, Inc. (NYSE:MO) is included among the 10 Best Long Term Low Risk Stocks to Buy According to Hedge Funds.

On May 15, Barclays raised its price recommendation on Altria Group, Inc. (NYSE:MO) to $64 from $63. It reiterated an Underweight rating on the stock. The firm said the latest FDA guidance could lead to more innovation across the tobacco sector. Barclays believes that could accelerate growth in next-generation products and potentially drive a re-rating of tobacco stocks.

During the Q1 2026 earnings call, CEO William Gifford described the quarter as a strong start to the year. He said adjusted diluted EPS increased 7.3% and noted that Altria’s highly cash-generative businesses continued supporting significant shareholder returns through dividends and share repurchases.

Speaking about oral nicotine pouches, Gifford pointed to continued category growth and the wider rollout of on! PLUS. He said reported shipment volume for the overall on! portfolio climbed nearly 18% to more than 46 million cans. He also noted that on! and on! PLUS together represented 7.8% of the total oral tobacco category. That figure was down 0.8 percentage points from the prior year but improved 0.2 percentage points sequentially.

Gifford added that on! PLUS started shipping nationwide in March and, by the end of the quarter, was available in roughly 100,000 stores. According to him, that represented 85% of the nicotine pouch category volume.

Altria Group, Inc. (NYSE:MO) operates a portfolio of tobacco products for U.S. tobacco consumers aged 21 and older. Its business is organized into smokeable products and oral tobacco products. The smokeable products segment includes combustible cigarettes and machine-made large cigars.

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