SWMAY - Altria: New U.S. Tax Proposal Would Protect Cigarettes Buy

• The latest U.S. budget proposal from House Democrats reinserted the "taxable nicotine" concept but left out other tobacco tax hikes.
• If passed, it would mean significant tax increases for e-vapor and nicotine pouches, but no change for cigarettes and moist snuff.
• The proposal would effectively protect U.S. cigarette sales. Altria would be a clear winner, while Swedish Match would be a clear loser.
• The likelihood of the proposal happening is reduced by Senator Joe Manchin's opposition. This is a low-probability, high-impact risk.
• We maintain our Buy rating on Altria, with an 8.0% Dividend Yield and a forecasted 21.0% annualized return, and on 3 other tobacco stocks.

For further details see: