Citigroup Says Buy Lorillard on Weakness

Citigroup has published a research report on Lorillard (NYSE: LO) after the company reported 3Q EPS below expectations.

In the report, Citigroup writes, "This morning, LO reported 3Q11 EPS of $1.94 (+7.2%), which came in four cents below our estimate, and nine cents below consensus. This miss to our forecast was driven by weaker-than-expected volume growth (with a 400 bps impact from shipment timing), which was partially offset by a lower-than-expected tax rate and share count."

Citigroup maintains its Buy rating and $125 price target on Lorillard, which closed Friday at $115.64.