UPDATE: Morgan Stanley Reiterates On Reynolds American On Solid Q3 Results

In a report published Wednesday, Morgan Stanley analyst Matthew Grainger reiterated an Equal-Weight rating on

, and raised the price target from $56.00 to $59.00. In the report, Morgan Stanley noted, “RAI delivered solid overall Q3 results, benefiting from above-expectation cigarette pricing/volumes, more than compensating for Vuse reinvestment. We modestly raise our 2014/15 EPS and increase our 12-month PT from $56 to $59, but remain EW with valuation at >11x 2015e EV/EBITDA.” Reynolds American closed on Tuesday at $61.03.