Higher cigarette prices and fewer legal challenges have a tobacco-industry analyst predicting a good year for Big Tobacco, Forbes reported March 6.

"The cigarette pricing environment should remain attractive in 2006," said Merrill Lynch analyst Christine Farkas, with retail prices up in January for Lorillard (4.7 percent increase), Philip Morris (4.5 percent increase), Brown & Williamson (6 percent increase), and R.J. Reynolds (1.4 percent increase) brands.

Farkas added that an improved U.S. litigation environment also persuaded her to issue a "buy" rating on Altria Group, parent of Philip Morris. Her advice was neutral on Reynolds American and Carolina Group.