The market has grossly underestimated the benefit of reduced legal pressure to Philip Morris parent Altria ( MO), a brokerage said Thursday.

Altria picked up about $10 billion in market capitalization after a Florida judge threw out a $145 billion judgment against the tobacco industry Wednesday, as the stock rose $3.93, or 10%, to $38.30. Analysts at CSFB think there's a lot more upside in the shares and upgraded them to outperform from neutral.

"Given the significance of the appellate court ruling and the recent State Farm decision, we believe an additional $15 billion of litigation liability can be lifted from Altria's valuation over the next 12 months, representing 15%-plus capital appreciation from current levels."

The State Farm decision is a recent Supreme Court holding that limits certain punitive damage awards.

It was only about a month ago that Philip Morris was at risk of bankruptcy after an Illinois court ordered it to post a $10 billion bond in order to appeal a stiff penalty in that state. The subsequent lowering of that burden was also cited in the CSFB note.

The shares were recently up 86 cents, or 2.3%, to $39.16.

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