Updated from 12:58 PM EDT.
"Demand for cigarettes in the U.S. is stronger than it has been for decades, and we think it is likely to remain robust," the firm wrote in a note earlier today.
Citi noted that it likes Altria's fundamentals. As the dominant player, the company leads industry prices in a way to suit itself, according to the firm.
Additionally, Citi believes domestic tobacco is a more attractive asset class than international.
The firm also began coverage of Reynolds American (RAI) stock with a "buy" rating and $57 price target and Phillip Morris (PM) shares with a "neutral" rating and $106 price target.
Altria is a Richmond, VA-based holding company is engaged in tobacco and cigarettes.
Shares of Altria were declining in mid-afternoon trading on Tuesday.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B+ on Altria stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, expanding profit margins and solid stock price performance.
The team believes its strengths outweigh the fact that the company has had generally high debt management risk by most measures that were evaluated.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: MO