Altria Group downgraded to Underweight from Equal Weight at Barclays

Barclays analyst Gaurav Jain downgraded Altria Group to Underweight from Equal Weight with a price target of $36, down from $53. Altria looks like a traditional tobacco business following the FDA’s denial of Juul with “very little in the way” of next generation products, Jain tells investors in a research note. As such, the analyst believes the shares deserve a “much lower multiple” than when he built in potential for a successful combination with Juul and possible “white-knight” bid from Philip Morris (PM). Due to weak cigarette volumes, he thinks Altria Group could cut its fiscal 2022 earnings guidance. Jain calls the company a “melting ice cube.”