UPDATE: Bank of America Transfers Coverage on Lorillard at Neutral
According to Bank of America, Lorillard (NYSE: LO) coverage is transferred at Neutral.
Bank of America said that while it expects LO's operating results to continue to outpace its domestic peers, given 2011 performance (+39% for LO vs. a flat S&P) and near term uncertainty surrounding a pending FDA update on the independent peer review on menthol, it is transferring coverage at Neutral with a $121 target. “However, shares also carry the highest level of potentially binary risk, with menthol accounting for 85/90% of volume/profits, respectively.”
Lorillard closed yesterday at $113.86.
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