Morgan Stanley Upgrades Reynolds American To Equal Weight

According to Morgan Stanley, Reynolds American RAI is upgraded to equal weight. Morgan Stanley said that the reasons included the ongoing profitable growth of Pall Mall (the largest price-value brand ever in US cigarettes). “We are upgrading RAI to Equal-weight and instituting a $38 12-month Price Target, as we believe RAI – our significant and long-standing skepticism notwithstanding – has largely realized a sustainable turnaround in its cigarette business, has withstood a competitive onslaught in MST, and is positioned to deliver operating results generally in-line with the overall US tobacco sector.” Reynolds American closed on Friday at $38.60.