Goldman Sachs analyst Judy Hong noted that European and U.S. tobacco stocks are underperforming, which she attributes to an FDA educational presentation on the topic of a potential tobacco standard for the level of nicotine in combusted cigarettes as well the FDA sending letters to 21 e-vapor makers to assess whether their products are being marketed illegally. Given that the FDA has already announced a comprehensive tobacco regulatory plan and has solicited comments on the costs/benefits of lowering nicotine, she views the presentation as more of an informational review of existing research rather than anything incremental. The letters she views as consistent with recent direction that the FDA is taking on cracking down on the e-vapor category given the apparent increase in youth consumption, Hong added. In total, she sees today's stock reactions as broadly overdone and keeps Buy ratings on Philip Morris (PM) and British American Tobacco (BTI) and Neutral ratings on Altria (MO) and Imperial Brands (IMBBY).