Oppenheimer Thinks Vector Group’s Stock is Going to Recover


Oppenheimer analyst Ian Zaffino maintained a Buy rating on Vector Group (NYSE: VGR) yesterday and set a price target of $27. The company’s shares closed yesterday at $18.46, close to its 52-week low of $17.90.

Zaffino observed:

“Despite solid volume and share gains at Liggett, a timing in price increases at Liggett and a negative mix shift at Elliman led to adjusted EBITDA of $65.1M, vs. our $73M. Tobacco grew revenues ~1.0% YoY, as retail shipments improved to 4.3%. However, EBITDA fell to $62.3M, from $66.7M, owing to the timing of price increases on wholesaler purchases. Real Estate revenues improved 3.4% YoY, but adjusted EBITDA declined ~8.5% YoY, as high-margin NYC sales softened. Given the aforementioned headwinds, we reduce from $260M. Maintain Outperform.”

According to TipRanks.com, Zaffino is a 4-star analyst with an average return of 3.2% and a 55.1% success rate. Zaffino covers the Services sector, focusing on stocks such as Servicemaster Global Holdings, Wyndham Destinations Inc, and Peak Resorts.

Currently, the analyst consensus on Vector Group is a Moderate Buy with an average price target of $27.

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Based on Vector Group’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $5.44 million. In comparison, last year the company had a net profit of $25.31 million.

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Vector Group Ltd. operates as a holding company, which manufactures and sells tobacco products. It operates through the following segments: Tobacco, E-Cigarettes and Real Estate. The Tobacco segment consists of the manufacture and sale of cigarettes. The E-Cigarettes segment includes the operations of the company’s e-cigarette business.

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