10:25 AM EDT, 04/25/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We maintain a 12-month price target of $35, based on a 2025 P/E of 6.7x and a justified discount to its five-year mean forward P/E of 9.8x given various risks. We maintain our adjusted EPS estimates of $5.10 for 2024 and $5.20 for 2025. MO posted Q1 adjusted EPS of $1.15 vs. $1.18 (-3%), in line with consensus. Slightly stronger-than-expected margins fully offset weaker sales, as net revenue fell 1.0% to $4.72B ($10M below consensus) driven by volume declines in smokeable (-9.9%) and oral tobacco (-3.1%) units. MO maintained 2024 adjusted EPS guidance of $5.05-$5.17 vs. the current consensus of $5.09. We maintain a Sell rating, as MO continues to struggle with volume declines across both product categories. We also believe the shares carry significant political risk in the event of a Biden re-election, which we believe would almost certainly result in the FDA advancing its proposed ban on menthol tobacco products (more than one-third of U.S. cigarette sales), though legal challenges would surely be mounted.