UPDATE: Stifel Nicolaus Downgrades Lorillard to Hold

Stifel Nicolaus lowers its rating on Lorillard LO to Hold from Buy on valuation following strong reaction in the stock price to its very robust Q4 earnings. Stifel Nicolaus says, " We continue to recommend investors own the shares and remain very confident in the fundamental outlook for the business. The company raised its dividend 19% with this earnings report and now stands at a 5% yield. Lorillard is trading at 9x on an EV/EBITDA basis and 13x on a P/E basis using our 2013 estimates. We regard this valuation as fair and appropriate for the shares, but with limited upside from this level." LO closed at $124.37 a share yesterday.