Citi Reiterates Buy on Lorillard

Citi is out with its report today on Lorillard LO, reiterating Buy. In a note to clients, Citi writes, "We remain encouraged by LO's healthy market share trends, as well as the company's positive price/mix and strong EBIT growth. In addition, today's news highlights the fact that pricing power remains intact for LO and for the tobacco industry. Though headline risk related to the FDA's review of menthol still exists, we continue to believe that an outright ban is unlikely. We reiterate our Buy (1M) rating and $122 target price on the stock." Shares of LO closed Thursday at $108.87.