Altria Group shares a bargain-Barron's

NEW YORK, Nov 8 (Reuters) - Altria Group (MO.N: Quote, Profile, Research) shares are a bargain, Barron's said Sunday, citing its low multiple, high yield and strong brands.

At its current prices, Altria has little downside and lot of potential to rally, the investment magazine said. At $18.50 Altria fetches 9.9 times next years earnings, cheaper than weaker rivals, and pays a 7.3 percent dividend.

Altria shares have been hurt by declines in smoking levels, higher local taxes, its expensive takeover of UST and questions of whether it will sell its SABMiller (SAB.L: Quote, Profile, Research) stake.

Barron's cited a report from Morgan Stanley analyst David Adelman, who said the stock could climb to $27 if Altria reduces spending, raises prices and resumes buying back shares.

(Reporting by Joseph A. Giannone; Editing Bernard Orr)