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Ahead of the Bell: Tobacco companies  

A Credit Suisse analyst downgraded Altria Group Inc. Monday, worried about possibly declining Marlboro prices and the company's ability to balance profit and market share growth for the cigarette brand.

In separate client notes, analyst Thilo Wrede boosted the price targets of peers Lorillard Inc. and Reynolds American ( RAI ) Inc.

Wrede said Altria ( MO)'s Marlboro has been underperforming, and reported market share loss in its most recent quarter. The analyst anticipates the Richmond, Va.-based tobacco company may have to cut prices of the cigarettes as unemployment continues to climb.

Wrede dropped Altria to "Neutral" from "Outperform" and reaffirmed a $20 price target.

The analyst still believes Lorillard is the best tobacco company in the U.S.

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