Reynolds American Given “Neutral” Rating at Zacks (RAI)
Reynolds American (NYSE:RAI)‘s stock had its “neutral” rating reiterated by Zacks in a note issued to investors on Friday, American Banking & Market News reports. They currently have a $50.00 price objective on the stock. Zacks‘ price target would suggest a potential upside of 4.17% from the stock’s previous close.
Zacks‘ analyst wrote, “Reynolds’ second-quarter 2013 earnings of $0.84 per share surpassed the year-ago earnings by 6.3% and beat the Zacks Consensus Estimate by a penny. Earnings improved on the back of positive pricing and higher profit during the quarter. Net sales increased only 0.1% year over year due to declining cigarette volumes. However, core brands like Camel, Pall Mall and Santa Fe gained market share backed by brand-building initiatives. Reynolds’ continuous innovations in the smokeless and moist snuff products are helping it to maintain a dominant share in the smokeless category. Furthermore, the company’s advancement in the e-cigarette category with its brand, Vuse, is encouraging. However, the high excise tax imposed by the governments around the world is pressurizing the company’s margins. Moreover, anti-smoking regulations remain a persistent overhang. We, therefore, prefer to stay on the sidelines, “
Reynolds American (NYSE:RAI) traded up 1.80% on Friday, hitting $48.865. 465,109 shares of the company’s stock traded hands. Reynolds American has a 52 week low of $39.70 and a 52 week high of $52.93. The stock’s 50-day moving average is $49.00 and its 200-day moving average is $47.52. The company has a market cap of $26.585 billion and a P/E ratio of 17.45.
Reynolds American (NYSE:RAI) last issued its quarterly earnings data on Wednesday, July 24th. The company reported $0.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.83 by $0.01. The company had revenue of $2.18 billion for the quarter, compared to the consensus estimate of $2.18 billion. During the same quarter last year, the company posted $0.79 earnings per share. Reynolds American’s revenue was up .1% compared to the same quarter last year. On average, analysts predict that Reynolds American will post $3.23 earnings per share for the current fiscal year.
A number of other firms have also recently commented on RAI. Analysts at Credit Agricole raised their price target on shares of Reynolds American (NYSE:RAI) from $43.00 to $48.00 in a research note to investors on Friday, July 26th. Separately, analysts at Jefferies Group raised their price target on shares of Reynolds American (NYSE:RAI) from $47.00 to $48.00 in a research note to investors on Thursday, July 25th. They now have a “hold” rating on the stock. Finally, analysts at TheStreet reiterated a “buy” rating on shares of Reynolds American (NYSE:RAI) in a research note to investors on Tuesday, July 16th.
Three investment analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. The stock has an average rating of “Buy” and a consensus target price of $50.17.
In other Reynolds American news, major shareholder & Williamson Holdings Brown unloaded 141,638 shares of Reynolds American stock on the open market in a transaction that occurred on Wednesday, September 4th. The stock was sold at an average price of $47.88, for a total value of $6,781,627.44. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Major shareholders that own 10% or more of a company’s stock are required to disclose their sales and purchases with the SEC.
Reynolds American Inc (NYSE:RAI) is a holding company.
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