UPDATE: Bank of America Transfers Coverage on Lorillard at Neutral

According to Bank of America, Lorillard LO coverage is transferred at Neutral. Bank of America said that while it expects LO's operating results to continue to outpace its domestic peers, given 2011 performance (+39% for LO vs. a flat S&P) and near term uncertainty surrounding a pending FDA update on the independent peer review on menthol, it is transferring coverage at Neutral with a $121 target. “However, shares also carry the highest level of potentially binary risk, with menthol accounting for 85/90% of volume/profits, respectively.” Lorillard closed yesterday at $113.86.