Reynolds American’s Neutral Rating Reaffirmed at Zacks (RAI)
Reynolds American (NYSE:RAI)‘s stock had its “neutral” rating reiterated by Zacks in a research report issued on Wednesday, Analyst RN reports. They currently have a $53.00 target price on the stock. Zacks‘ price objective indicates a potential upside of 5.37% from the company’s current price.
Zacks‘ analyst wrote, “Reynolds’ third-quarter 2013 earnings of $0.86 per share surpassed the year-ago earnings by 8.9%. Earnings were however in line with the Zacks Consensus Estimate. Earnings improved on the back of positive pricing and higher profit during the quarter, which was partly offset by shift of demand from cigarettes to other non tobacco products. Net sales increased only 0.9% 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. Moreover, 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. “
A number of other analysts have also recently weighed in on RAI. Analysts at JPMorgan Chase & Co. raised their price target on shares of Reynolds American from $61.00 to $65.34 in a research note to investors on Thursday, October 3rd. They now have an “overweight” rating on the stock. Separately, analysts at Credit Agricole raised their price target on shares of Reynolds American from $43.00 to $48.00 in a research note to investors on Friday, July 26th. Finally, analysts at Jefferies Group raised their price target on shares of Reynolds American 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. Three equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. The stock has a consensus rating of “Buy” and a consensus price target of $51.39.
Shares of Reynolds American (NYSE:RAI) traded down 0.16% during mid-day trading on Wednesday, hitting $50.22. The stock had a trading volume of 1,489,566 shares. Reynolds American has a 1-year low of $39.70 and a 1-year high of $52.93. The stock’s 50-day moving average is $48.94 and its 200-day moving average is $47.56. The company has a market cap of $27.322 billion and a P/E ratio of 18.29.
Reynolds American (NYSE:RAI) last announced its earnings results on Tuesday, October 22nd. The company reported $0.86 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.86. The company had revenue of $2.14 billion for the quarter, compared to the consensus estimate of $2.14 billion. During the same quarter in the previous year, the company posted $0.79 earnings per share. The company’s revenue for the quarter was up .9% on a year-over-year basis. On average, analysts predict that Reynolds American will post $3.23 earnings per share for the current fiscal year.
In other Reynolds American news, major shareholder & Williamson Holdings I. Brown sold 124,304 shares of Reynolds American stock in a transaction that occurred on Tuesday, October 22nd. The shares were sold at an average price of $50.71, for a total transaction of $6,303,455.84. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Major shareholders that own more than 10% of a company’s shares are required to disclose their sales and purchases with the SEC.
Reynolds American Inc (NYSE:RAI) is a holding company.
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