Deutsche Bank Maintains Hold Rating On LO

Deutsche Bank is maintaining its Hold rating on Lorillard, Inc. LO. “We remain concerned about menthol regulation and near-term impact on Lorillard, Inc. LO as TPSAC holds final two meetings this month,” Deutsche Bank writes. “The panel's discussions this week will be an important indicator, but today's draft chapters do not change our read. They reaffirm disease risk/epidemiology are favorable for menthol, but key risks are masking effect & underage. Stock is discounting ~40% probability of a ban, but still vulnerable if recommendations in March are negative.” Lorillard, Inc. closed Monday at $76.77.