Wells Fargo Starts Lorillard (LO) at Market Perform; Strongly Positioned For Future Organic Growth
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Price: $71.40 --0%
Rating Summary:
3 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
3 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wells Fargo initiates coverage on Lorillard (NYSE: LO) with a Market Perform. Valuation range $107-109.
Wells analyst says, "We are impressed with LO’s competitive position in the
menthol category and its leading Newport brand franchise. Overall we agree with LO’s strategy to actively pursue its considerable white space opportunities without dramatically changing the course of its business. Although Newport’s
runway is long, we would like more comfort that LO will be able to take share
while maintaining and expanding its margin. Based on (1) the run-up in the
stock (31% return year to date versus the S&P 500, up 7.5% year to date); (2)
LO’s current valuation; (3) some uncertainty surrounding a potential Food and
Drug Administration (FDA) ban of menthol (highly unlikely, in our view); and
(4) some concerns about LO’s ability to sustain its attractive margin, we
recommend that investors wait to commit new money in the name at this time."
For more ratings news on Lorillard click here and for the rating history of Lorillard click here.
Shares of Lorillard closed at $109.02 yesterday.
Wells analyst says, "We are impressed with LO’s competitive position in the
menthol category and its leading Newport brand franchise. Overall we agree with LO’s strategy to actively pursue its considerable white space opportunities without dramatically changing the course of its business. Although Newport’s
runway is long, we would like more comfort that LO will be able to take share
while maintaining and expanding its margin. Based on (1) the run-up in the
stock (31% return year to date versus the S&P 500, up 7.5% year to date); (2)
LO’s current valuation; (3) some uncertainty surrounding a potential Food and
Drug Administration (FDA) ban of menthol (highly unlikely, in our view); and
(4) some concerns about LO’s ability to sustain its attractive margin, we
recommend that investors wait to commit new money in the name at this time."
For more ratings news on Lorillard click here and for the rating history of Lorillard click here.
Shares of Lorillard closed at $109.02 yesterday.
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