UPDATE: Jefferies Reiterates Hold on Reynolds American; Raises PT from $42 to $46
Jefferies maintained a Hold rating on Reynolds American (NYSE: RAI) and raised its price target from $42 to $46.
Jefferies wrote, “In a challenging tobacco environment RAI's 2Q12 adj. EPS of $0.79 beat our forecast by 1 cent, helped by a low tax rate. The cigarette business was underwhelming, as the promotional environment seems to remain very competitive. However, Grizzly and Native American Spirit continue to perform well, partially offsetting the RJRT challenges. We do not see any improvement in the competitive behavior in the near term.”
Reynolds American closed at $45.41 on Wednesday.
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