Berenberg Starts Reynolds American (RAI) at Hold

Berenberg initiates coverage on Reynolds American (NYSE: RAI) with a Hold rating and a price target of $54.00.

Analyst Jonathan Leinster commented, "We initiate on Reynolds American with a Hold rating and a $54.00 price target. The acquisition of the growing Newport brand and the disposal of a series of non-core brands should see Reynolds American able to consistently grow market share in the US cigarette market, as well as in the smokeless tobacco segment via Grizzly. Combined with better industry pricing due to the further round of consolidation, we believe it can sustain 3-4% organic sales growth in the medium term."

For an analyst ratings summary and ratings history on Reynolds American click here. For more ratings news on Reynolds American click here.

Shares of Reynolds American closed at $50.77 yesterday.

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