The firm said it lowered its rating on the holding company, whose subsidiaries include cigarette maker Philip Morris USA Inc. (PM), as it believes the company "has the most to lose" as demand for e-cigarettes will continue to grow over the next decade.
Wells Fargo kept its $41-$43 price target on the stock.
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Separately, TheStreet Ratings team rates ALTRIA GROUP INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALTRIA GROUP INC (MO) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows: