Jefferies Maintains a 'Buy' on Lorillard (LO); Leveraged Growth
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Price: $43.83 -0.63%
Rating Summary:
3 Buy, 5 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 10 | Down: 23 | New: 22
Rating Summary:
3 Buy, 5 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 10 | Down: 23 | New: 22
Trade LO Now!
Jefferies maintains a 'Buy' on Lorillard (NYSE: LO) price target of $144.00.
Analyst, Thilo Wrede, said, "LO announced today that it is issuing $500 million of new debt (5 yr notes with a 2.3% coupon) and it is raising its gross debt/EBITDA target from 1.5x to 1.5x-2.0x. We see this as a positive signal as it will most likely lead to a restart of LO’s dormant share repurchase program. $500 million of share repurchases could be worth about 1.5% of incremental EPS growth – we had already assumed that the company would access markets in 4Q12."
FY13 raised from $9.27 to $9.34.
For an analyst ratings summary and ratings history on Lorillard click here. For more ratings news on Lorillard click here.
Shares of Lorillard closed at $129.00 yesterday, with a 52 week range of $100.76-$141.07.
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Analyst, Thilo Wrede, said, "LO announced today that it is issuing $500 million of new debt (5 yr notes with a 2.3% coupon) and it is raising its gross debt/EBITDA target from 1.5x to 1.5x-2.0x. We see this as a positive signal as it will most likely lead to a restart of LO’s dormant share repurchase program. $500 million of share repurchases could be worth about 1.5% of incremental EPS growth – we had already assumed that the company would access markets in 4Q12."
FY13 raised from $9.27 to $9.34.
For an analyst ratings summary and ratings history on Lorillard click here. For more ratings news on Lorillard click here.
Shares of Lorillard closed at $129.00 yesterday, with a 52 week range of $100.76-$141.07.
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