Reynolds American Receives “Neutral” Rating from Zacks (RAI)
Reynolds American (NYSE:RAI)‘s stock had its “neutral” rating reiterated by Zacks in a note issued to investors on Thursday. They currently have a $60.00 price target on the stock. Zacks‘s price target would indicate a potential upside of 4.99% from the company’s current price.
Zacks’ analyst wrote, “Reynolds’ second-quarter 2014 earnings of $0.89 per share beat both the Zacks Consensus Estimate and year ago earnings by 2.3%. Higher cigarette and moist snuff pricing which, more than offset increased investment on the Vuse brand of e-cigarettes led to profit upswing during the quarter. Net sales slipped 0.8% due to lower sales in the tobacco segment. Core brands like Camel, Pall Mall and Santa Fe continued to deliver strong performance. Reynolds’ continuous innovations in the smokeless and moist snuff products are helping it to maintain a dominant share in the category. Moreover, the company’s advancement in the e-cigarette category with the Vuse brand is encouraging. However, the high excise tax and anti-smoking regulations remain a persistent overhang. Again, the tobacco sector is facing declining volume for the past few quarters due to shift in demand from cigarettes to other non-tobacco products. We, therefore, prefer to stay on the sidelines”
Reynolds American (NYSE:RAI) traded down 1.35% during mid-day trading on Thursday, hitting $56.38. 1,201,965 shares of the company’s stock traded hands. Reynolds American has a one year low of $46.55 and a one year high of $63.39. The stock’s 50-day moving average is $59.89 and its 200-day moving average is $55.01. The company has a market cap of $30.068 billion and a P/E ratio of 19.22.
Reynolds American (NYSE:RAI) last announced its earnings results on Tuesday, July 29th. The company reported $0.89 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.87 by $0.02. The company had revenue of $2.16 billion for the quarter, compared to the consensus estimate of $2.19 billion. During the same quarter last year, the company posted $0.84 earnings per share. Reynolds American’s revenue was down .8% compared to the same quarter last year. Analysts expect that Reynolds American will post $3.38 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Wednesday, October 1st. Investors of record on Wednesday, September 10th will be given a dividend of $0.67 per share. This represents a $2.68 dividend on an annualized basis and a yield of 4.69%. The ex-dividend date of this dividend is Monday, September 8th.
Other equities research analysts have also recently issued reports about the stock. Analysts at RBC Capital upgraded shares of Reynolds American from an “outperform” rating to a “top pick” rating in a research note on Monday. They now have a $72.00 price target on the stock. Finally, analysts at Cowen and Company initiated coverage on shares of Reynolds American in a research note on Thursday, July 10th. They set a “market perform” rating and a $62.00 price target on the stock. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating, four have given a buy rating and one has issued a strong buy rating to the company’s stock. The company has an average rating of “Buy” and a consensus price target of $62.04.
Reynolds American Inc (NYSE:RAI) is a holding company.
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