If you’re looking for a stock to bet on, Wall Street appears to be pushing its clients to a very familiar category–tobacco. The recent troubles vaping manufacturers and users has faced is having many analysts recommending its clients buy stock in tobacco companies, including Altria.
Vice US reported an email circulating from Adam Spielman, a London-based managing director at Citigroup, who urged his clients to buy stock in Altria, one of the largest tobacco companies in the U.S. and makers of popular cigarette brand Marlboro. A suggestion to buy Altria stock may turn heads considering the rocky year the big tobacco company has experienced. After investing nearly $12.8 billion in e-cigarette manufacturer JUUL Labs in 2018, Altria has since had to write down that investment. JUUL Labs has itself experienced a great deal of change in the past year. It’s CEO stepped down last year and was replaced by an Altria executive [read more here], the company’s founders were called to Capitol Hill to testify about the company’s past marketing tactics [read more here], and the company has pulled most of its flavored pod products from the market ahead of a national ban on flavored e-cigarette products proposed by the Trump Administration [read more here].