The Average Price For Cigarettes Will Be Above $5 A Pack
Altria Group (MO) says it will soon raise prices on Marlboro and other brands by 71 cents a pack.
Altria thinks cigarette sales could drop a bit, so it’s increasing prices to make up for the loss.
Analysts at Credit Suisse expect Altria’s revenue to grow this year instead of decline.
The average price for cigarettes will soon be above $5 a pack, according to Credit Suisse.
Rival Reynolds American (RAI) isn’t saying whether it will raise prices on its Camel brand of cigarettes.
The market seems to be rewarding price hikes: Altria’s shares rose more than 3% Thursday on the pricing news, while Reynolds shares fell by nearly 3%.
Altria is cutting prices on cans of Skoal and Copenhagen by about 62 cents, according to Reuters.
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