As previously reported, Morgan Stanley analyst Pamela Kaufman downgraded Altria Group to Underweight from Equal Weight after reducing her forecasts to low-single-digit EPS growth starting in 2019 based on her expectation for accelerated cigarette industry volume declines. She cites shifting demographic trends, category disruption and "harsh FDA regulatory objectives" for her volume decline forecast. However, Kaufman also believes the recent de-rating of Philip Morris (PM) shares is unwarranted, as she contends that global cigarette fundamentals are solid and the company is not subject to many of the risks impacting U.S. tobacco. She cut her price target on Altria shares to $45 from $54 and keeps an Overweight rating on Philip Morris with an $80 price target.