UPDATE: Stifel Nicolaus Upgrades Lorillard to Buy

Stifel Nicolaus is out with its report today on Lorillard LO, upgrading LO from Hold to Buy. In its report, Stifel Nicolaus writes, "We are upgrading Lorillard to Buy from Hold and establishing a $122 target price. We believe the underlying growth supports a higher relative valuation for the shares. We believe that the robust near-term earnings growth profile alongside the still largely latent balance sheet opportunity substantiate a premium multiple to the U.S. tobacco group." Shares of LO closed Thursday at $105.62.