Altria shares traded up Friday, following a rating upgrade from Goldman Sachs analysts.
The analysts at Goldman Sachs raised their rating on the tobacco company to buy from neutral. Analyst Judy Hong cited a “10-year trough despite a more accommodating market backdrop," for the tobacco industry stocks as a reason behind the rating upgrade. Hong indicated that strong fundamentals, promising next generation tobacco products and expectations of easing of regulatory concerns over time should help to boost tobacco stocks.
Hong's 12-month price target on Altria shares is $59, which reflects a total potential return of 27% including the 6% dividend yield.