Deutsche Bank: Downgrade Altria Group, Inc. (MO.US) to "Hold" due to unfavorable patent factors.

Deutsche Bank Aktiengesellschaft has downgraded Altria Group, Inc. (MO.US) from "buy" to "hold" and set a target price of $60. The bank stated that the company's stock has limited potential for further growth in light of recent challenges. The downgrade also reflects uncertainties surrounding the NJOY lawsuit against Altria Group, Inc. In January of this year, the U.S. International Trade Commission ruled that NJOY's ACE electronic cigarette products infringed on four patents held by Juul Labs, and issued limited exclusion orders and cease-and-desist orders banning the import and sale of NJOY ACE until the patents expire in 2034 and 2037. As a result, Altria Group, Inc. will no longer be able to sell NJOY products in the U.S., leading to a significant drop in revenue expected to begin in the second quarter. Looking ahead, Altria Group, Inc. has potential paths forward, including appealing the ITC's decision in federal court, negotiating a settlement with Juul, or seeking FDA approval for NJOY through substantial equivalence. Due to potential profit sharing factors, the analyst team at Deutsche Bank Aktiengesellschaft believes that Altria Group, Inc. has a reasonable valuation with a 2025 fiscal year price-to-earnings ratio of 11.3 times and an EV/EBITDA ratio of 6.9 times.