UPDATE: Bank of America Merrill Lynch Reiterates Neutral Rating, Raises PT for Reynolds American

In a report published earlier today, Bank of America Merrill Lynch reiterated its Neutral rating for Reynolds American, Inc. (NYSE: RAI) and raised its price target from $40.00 to $44.00.

BofA Merrill Lynch went on to say “RAI is the 2nd largest US cigarette producer with two growth brands, namely Camel and Pall Mall. It also owns the leading value smokeless name American Snuff Co, with its key brand Grizzly. While we like RAI's diversified portfolio across tobacco segments, its strong dividend yield and execution track record, RAI's cigarette portfolio is somewhat disadvantaged in our view and more subject to downtrading, the smokeless market remains competitive and synergy savings could moderate.”

Reynolds American, Inc. closed yesterday at $43.69.

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