Altria Shares Reach Record High Amid Strategic Pivot

Altria stock reaches new high after analyst target raise. Focus shifts to valuation and 2026 EPS targets amid strategic pivot to smoke-free products.

Investor attention has returned to Altria Group, not due to a single headline, but rather a confluence of strategic updates and a reassessment of the company's valuation. Following recent presentations outlining its "smoke-free" future and its approach to combating the illegal e-vapor trade, the market is recalibrating its expectations for the tobacco giant.

Market Performance and Analyst Reassessment

The stock recently reflected this renewed evaluation by achieving a significant milestone. Shares closed at 58.82 euros, marking a new 52-week high. This upward movement comes alongside a notable revision from Barclays. While analyst Gaurav Jain maintained an "Underweight" rating on the stock, he raised the price target to $63 from a previous $57. This seemingly contradictory move is common in analyst logic: a higher assessment of fair value can coexist with the view that other equities in the sector offer more compelling opportunities.

A Closer Look at the Financials and Strategy

The context for this activity is provided by Altria's latest quarterly results and its forward-looking strategy. For the fourth quarter, the company reported revenue of $5.08 billion, a figure that exceeded analyst expectations. However, on the earnings front, it posted quarterly earnings per share (EPS) of $1.30, which came in slightly below consensus.

This combination—revenue strength with a slight earnings miss—has shifted the current discussion. The focus is less on a simple binary of good or bad and more squarely on valuation, timing, and the credibility of the company's ongoing transformation.

Central to that transformation is a strategic shift toward smoke-free alternatives. At a recent CAGNY conference presentation, Altria confirmed its full-year 2026 outlook. The company is targeting an adjusted diluted EPS in the range of $5.56 to $5.72. This represents growth of 2.5% to 5.5% over 2025, though management indicated this growth is expected to be weighted toward the second half of the year.

A critical component of the 2026 plan is the assumption that its E?Vapor product NJOY ACE will not return to the market this year. Consequently, the immediate growth burden falls more heavily on its oral nicotine pouch products to fill the gap.

The Path Forward

The coming months will be pivotal for Altria. Investors will be watching to see if the company can deliver on its confirmed 2026 EPS target of $5.56 to $5.72, particularly with its projected back-half weighted growth pattern. Furthermore, the market will assess whether the intensified focus on oral products can successfully compensate for the anticipated absence of NJOY ACE from its portfolio this year.