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Tobacco companies' shares were once again hit hard in pre-commercial trading on Monday, which adds to the losses of the previous session, after The Wall Street Journal announced that the Food and Drug Administration was considering a ban on menthol cigarettes. Wells Fargo analyst Bonnie Herzog recommended buying down shares of cigarette manufacturers as she believes a total ban on menthol is "very unlikely". Altria shares fell 3.0% before opening, after falling 3.0% on Friday, while British American Tobacco PLC shares, listed in the US
BTI, -4.24%
fell 7.7% after dropping 4.2% on Friday. Shares of Philip Morris International Inc.
PM, -0.34%
lost 0.7% before marketing after slipping 0.3% Friday. The WSJ reported Friday night that although FDA Commissioner Scott Gottlieb is planning to ban menthol, citing senior agency officials, it could take a year or more for this ban to be banned. finalized. This decision would come after the FDA concluded in 2013 that it was harder to leave menthols, the WSJ report said. Herzog of Wells Fargo stated that she did not believe that science supports the claim that menthol is more harmful than nonhmenthol. "In the end, we encourage [long-term] investors oriented to profit from everything [near-term] low stocks of tobacco (especially [Altria]Herzog writes in a note to his clients). Altria shares lost 7.4% in the last three months, while the S & P 500
SPX, -0.92%
lost 1.8%.
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