Deutsche Bank Expects Pressure from FDA's Menthol Science Review on Lorillard

Deutsche Bank has published a research report on Lorillard (NYSE: LO) and expects pressure from the FDA's menthol science review.

In the report, Deutsche Bank writes, "Most likely scenario may be FDA recognizing concerns but deferring action, while worst-case would be any indication it is moving toward a ban, given LO's menthol dependence (95% of EBITDA). Visibility is low and LO retains solid fundamentals, but at 13.0x (2012E) the stock is not discounting much of a negative regulation scenario."

Deutsche Bank maintains its Hold rating and $103 price target on Lorillard, which closed yesterday at $112.01 and is currently trading down $1.71 today since market open.