NEW YORK (CNN/Money) - Shares of tobacco stocks rallied again Thursday on belief that the industry will be spared a legal onslaught from aggrieved smokers.

Altria (MO: Research, Estimates), whose Philip Morris unit make Marlboros, Virginia Slims and Parliament cigarettes, rose $3.01 to $41.31, bringing its two-week advance to 32 percent.

The maker of Camel, Winston and Salem cigarettes, R.J. Reynolds Tobacco Holdings Inc. (RJR: Research, Estimates), jumped $1.15 to $34.43, widening its two-week gain to 22 percent.

Goldman Sachs Thursday upgraded the tobacco sector to "attractive" from "neutral," and Credit Suisse First Boston raised its Altria rating to "outperform" from "neutral."

"These decisions reflect our view that the health-related litigation risk profile for the cigarette companies has improved significantly following recent legal events," Judy E. Hong, who covers the sector for Goldman Sachs, told clients.

The industry scored a big victory Wednesday when a Florida appeals court reversed a $145 billion judgment that held the five biggest U.S. tobacco companies liable for the illnesses of some 700,000 smokers.

Andrew Conway, who covers the industry for Credit Suisse First Boston, said that decision, coupled with two other legal developments, lifts a cloud of liability from Altria, a frequent target of plaintiffs suffering from lung cancer.

Earlier this month, an Illinois judge cut the amount that Philip Morris would have to post to appeal a different lawsuit to $6 billion from $10 billion. Conway also said that the industry should be encouraged by an April Supreme Court ruling regarding the insurer State Farm that caps punitive damage awards in civil litigation.

Conway raised his price target on Altria to $45 from $32. Goldman Sachs upped its 12-month target on the stock to $50.