UBS on U.S. Tobacco: Raising PT on Buy-Rated MO/LO
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Price: $68.47 +3.60%
Rating Summary:
8 Buy, 11 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 7 | New: 77
Rating Summary:
8 Buy, 11 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 7 | New: 77
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UBS on U.S. Tobacco: Still Smokable?
Analyst, Nik Modi, said, "Despite all the noise this quarter, our Buy rated tobacco stocks (Altria (NYSE: MO) / Lorillard (NYSE: LO)) have delivered a healthy level of returns YTD—outperforming staples peers by 300 bps. However, with such strong performance and another quarter in the rear view mirror, we found ourselves conducting another “self audit” on our bullish stance. Sticking with Core Stock Driver Principles The pillars to our bullish stance over the past 6 years have been: 1) sector rotation, 2) changes in interest rates and 3) favourable pricing. While sector rotation ebbs and flows, low rates and favourable pricing have been constants in our tobacco outperformance formula and these drivers still remain relevant today."
Modi raises price target on Buy-rated MO and LO, maintains a Neutral rating on Reynolds American (NYSE: RAI).
Analyst, Nik Modi, said, "Despite all the noise this quarter, our Buy rated tobacco stocks (Altria (NYSE: MO) / Lorillard (NYSE: LO)) have delivered a healthy level of returns YTD—outperforming staples peers by 300 bps. However, with such strong performance and another quarter in the rear view mirror, we found ourselves conducting another “self audit” on our bullish stance. Sticking with Core Stock Driver Principles The pillars to our bullish stance over the past 6 years have been: 1) sector rotation, 2) changes in interest rates and 3) favourable pricing. While sector rotation ebbs and flows, low rates and favourable pricing have been constants in our tobacco outperformance formula and these drivers still remain relevant today."
Modi raises price target on Buy-rated MO and LO, maintains a Neutral rating on Reynolds American (NYSE: RAI).
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