On Thursday, Goldman Sachs (NYSE:GS) adjusted its price target on shares of Altria Group Inc. (NYSE: NYSE:MO), increasing it to $47 from $46, while reaffirming a Buy rating on the stock. The revision follows Altria's pricing of its Anheuser-Busch InBev stock offering at $62.50 per American Depository Share (ADS), which is approximately €56.17 per ordinary share, totaling an estimated $2.4 billion. This figure includes the repurchase of $200 million of ordinary shares directly from Altria by Anheuser-Busch InBev.
Concurrent with the stock offering pricing, Altria has raised its full-year 2024 earnings per share (EPS) guidance. Additionally, the company has announced a new $2.4 billion accelerated share repurchase (ASR) program. This program is in addition to the existing $1 billion share repurchase plan, with both expected to be completed by the end of the year.
In light of these developments, Goldman Sachs has increased its EPS estimates for Altria for the fiscal years 2024 and 2025. The investment firm cites Altria's robust cash flow from its tobacco business, a strong balance sheet, and a commitment to returning value to shareholders as key factors in its positive outlook.
Goldman Sachs also highlights Altria's attractive valuation as a rationale for maintaining the Buy rating. The firm views Altria as a high-quality asset within the market, poised to continue generating shareholder value.
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