UPDATE: Morgan Stanley Raises PT on Lorillard Following CAGNY Conference

In a report published Wednesday, Morgan Stanley analyst Pamela Kaufman increased the price target and remained Neutral on Lorillard

from $34 to $45. Kaufman believed this to be a result of Lorillard's strong fundamentals in spite of a competitive industry and lower than expected sales. In the report, Morgan Stanley noted "In the context of a challenging consumer staples operating environment – e.g., a slowdown in many Emerging Markets, significant FX pressure due to USD strength, a strapped low-end US consumer, selectively reduced consumer responsiveness to promotional spend, low workforce participation & lower government SNAP expenditures – LO's core fundamentals remain strong and resilient. This is a reflection of Newport's solid core franchise, attractive long-term demographics, strong pricing, a relatively stable overall competitive environment, and strong and consistent execution." On Tuesday, Lorillard closed at $47.31.