Goldman Sachs Downgrades Lorillard to Neutral

Goldman Sachs is out with its report today on Lorillard LO, downgrading LO from Buy to Neutral. In its report, Goldman Sachs writes, "We are downgrading LO from Buy to Neutral in conjunction with our addition of BEAM to CL-Buy. We remain constructive on LO's fundamentals and solid cash return story, but we have become incrementally more concerned about US cigarette fundamentals and the lingering menthol overhang could limit an upward re-rating in LO's multiples." Goldman Sachs has a $123 PT on LO. At the time of posting, shares of LO were trading pre-market at $111.33, down 1.43% from Monday's close.