The firms remain encouraged by MO’s international portfolio and opportunities, its strong cash flow, strong balance sheet, and an attractive yield. Bullish analysts believe that the task of stabilizing share in the growing smokeless division is an arduous task, but believe that the increased promotion will help Altria stabilize share for its Skoal and Copenhagen brands sometime in early 2010. Share stabilization in smokeless category together with synergy realization will be a strong growth engine for the Company as cigarette volumes continue to decline. In addition, Altria's attractive dividend yield and strong balance sheet are both sources of strength for the stock. Analysts believe Altria's balance sheet strength would support the reinstatement of a share repurchase program. In addition, the firms believe that the acquisition of UST will provide MO with a strong presence in the solidly growing MST category, with premium brand leadership in the space.
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