VGR - Vector Group: Uncertainty Looms Hold

2024-07-27 00:47:10 ET

Summary

• Vector Group Ltd. recommended as a hold due to growing headwinds and cautious outlook on Q1 2024 performance.
• The stock has gained 22.27% since previous coverage, but underwhelming MRQ performance and weak revisions suggest caution.
• Technical indicators show a bullish trajectory, but industry challenges and change in strategy may impact long-term sustainability.

Investment Thesis

I recommend holding Vector Group Ltd. (VGR) on account of the growing headwinds. On February 13, I published a bullish thesis on VGR where I reiterated a buy rating owing to the company's attractive dividend policy and resilient and low-cost model. In this follow-up coverage, I have a cautious outlook given the Q1 2024 performance which could signal that the headwinds are potentially hitting VGR....

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