Altria: The Reasons Why I Am Not Selling Yet

Altria remains an attractive dividend payer, but its overreliance on declining smokable products tempers my previous bullish outlook. MO's Q2 and H1 results revealed flat real revenue growth and continued struggles to diversify meaningfully into e-vapor and oral tobacco. Despite failed diversification attempts, MO's strong cash generation and pricing power support a fair value estimate of $76 per share—12% upside. For now, a hold stance is justified, awaiting clearer growth in oral tobacco and e-vapor before turning bullish or adding to existing positions.

I have been covering Altria (MO) since August 2024, and I have been always bullish on the firm and its outlook. The company's superb cash generation potential, its attractive dividend payments, and the potential