Altria Shares Fall After Spin-Off

Shares fell 5 cents, less than a percent, to close at $22.15 Tuesday.

Analyst David J. Adelman lowered his rating to "Equal Weight" from "Overweight" and said in a note to investors that that the company's prospects for outperformance have diminished.

Adelman said several drivers of the stock have been accomplished, including the spin-off of the Philip Morris division into a new company called Philip Morris International Inc. and the spin-off last year of food maker Kraft Foods Inc. Altria is left with businesses including its domestic tobacco operations and a minority stake in Britain-based beer maker SABMiller PLC.

Adelman said even though Altria's shares are cheap given its strong global portfolio, popular brands and substantial cash flow, its peers have similar characteristics and are also undervalued.

He added that the stock could become more attractive in a year as profit growth improves and Altria's management becomes more aggressive by taking actions like recapitalizing the balance sheet or reducing costs.