Altria Group shares a bargain-Barron's

NEW YORK, Nov 8 (Reuters) - Altria Group (MO.N) 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) 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)