Deutsche Bank Reports On Volatility For LO This Week

Deutsche Bank is maintaining its $98 price target and its Hold rating on Lorillard LO following the company's recent volatility due to a TPSAC flare-up. According to Deutsche Bank, “TPSAC is expected to post a revised menthol report by June 22, to be discussed at July 21 meeting… Revisions now appear minor. Apprehension about these “surprise” changes caused significant volatility for LO this week. While it was feared the report could be strengthened, press reports yesterday resolved this with an FDA official indicating purely editorial changes. Indeed TPSAC has already made a negative recommendation, and is not supposed to make material changes at this stage…The more pressing issue remains review by FDA, as the final decision-maker and where we still have very little visibility. Therefore, June 22nd could still be significant, as FDA' promised 90-day update helps frame their view.” LO closed yesterday at $113.59.