UPDATE: Deutsche Bank Raises Target to $122 on Lorillard

Deutsche Bank reiterates its Hold rating on Lorillard LO on continued lack of regulatory visibility but raises its price target by $6 to $122 on continued momentum and shareholder distribution. Deutsche Bank says, "Newport menthol franchise remains strong as an engine of industry-leading profit growth in cigarettes, despite lack of exposure to smokeless. Company has volume momentum as it expands the brand, and management is delivering cash to shareholders. While today also portrayed better balance toward pricing/margins, we remain neutral as the stock is already discounting strong 2012 vs. revised target, competitors becoming less tolerant of share loss, and further upside from here requires a visibility on FDA menthol review which is still lacking." LO closed at $113.36 a share on Thursday.