Deutsche Bank Has Hold On Lorillard

Deutsche Bank has a Hold rating and a $88 price target on shares of Lorillard LO. In a note to clients, Deutsche Bank writes, "Our view remains a ban is not the most likely outcome, but visibility is low, and one cannot overlook that the advisory panel has made a negative recommendation. This could be difficult to circumvent, and the closer we get to a decision, the stronger one's conviction must be of no FDA follow- through. After yesterday's move, LO appears more exposed to downside vs. upside risk from the process, as we estimate it now discounts < 10% probability of a ban." Shares of LO gained $12.02 yesterday to close at $113.59, a gain of 11.8%.