Deutsche Bank Has Hold Rating On Lorillard Following Investor Day (LO)

Deutsche Bank has a Hold rating and a $98 price target on shares of Lorillard LO following the company's Investor Day. In a note to investors, Deutsche Bank writes, "Mgmt. gave an aggressive but well-reasoned strategy to expand Newport into "adjacencies" and enhance profit, while protecting the core Eastern menthol franchise. LO lacks tobacco diversification, but strength of Newport menthol remains a major asset, enabling balanced growth of profits & share. Overall, we believe presentations support our estimates for mid-to-high single digit revenue & EBIT growth, cash return is on track, legal environment stable. Retain Hold on fair valuation, low visibility into FDA review of menthol (next round mid-June)." Shares of LO closed at $106.62 yesterday.