Consumer – Tobacco: First

By claiming the top spot for a tenth consecutive year, Morgan Stanley’s David Adelman earns a place in the All-America Research Team Hall of Fame. “He understands the industry structure and issues as well as — if not better than — anyone else,” says one satisfied client. Adelman’s message to investors: Look abroad. “The risk-reward [ratio] is considerably more attractive for the international manufacturers than the domestic ones,” the 46-year-old analyst says, adding that the U.S. tobacco market continues to confront regulatory and litigation challenges that “we do not believe are being fully priced in.” Adelman has been bullish on Philip Morris International, a New York–based cigarette manufacturer that distributes its products only in foreign markets, since March 2008, when it was spun off from Virginia-based parent company Altria Group. In the 12 months through August, the stock surged 34.1 percent, from $66.61 to $89.30, and beat the sector by 7.9 percentage points. Adelman “stands out the most of any analyst in any sector,” insists one buy-side supporter.