Lorillard Stock Rating Reaffirmed by Zacks (LO)
Lorillard (NYSE:LO)‘s stock had its “neutral” rating reaffirmed by Zacks in a report released on Friday. They currently have a $64.00 price objective on the stock. Zacks‘s target price suggests a potential upside of 5.98% from the stock’s previous close.
Zacks’ analyst wrote, “Lorillard’s second quarter earnings of $0.84 per share exceeded the prior-year earnings by 3.7% driven by higher cigarette sales and lower share count owing to share buyback activity. However, earnings missed the Zacks Consensus Estimate by 4.5%, which we believe was due to lower sales in the e-cigarette segment. Net sales beat the Zacks Consensus Estimate by 34%, but declined 0.3% year over year due to a decline in net sales of electronic cigarettes, partially offset by a marginal increase in net sales of regular cigarettes. Overall, we remain concerned with the declining e-cigarette sales due to the impact of an unfavorable mix of new, lower priced rechargeable kits as well as higher retail distribution costs. However, we are encouraged with the improving cigarette sales owing to its strong brands and growing market share. The recent merger news with Reynolds American is expected to benefit its shareholders and help grow its brands.”
LO has been the subject of a number of other recent research reports. Analysts at Nomura upgraded shares of Lorillard from a “reduce” rating to a “neutral” rating in a research note on Monday, July 28th. They now have a $64.00 price target on the stock, up previously from $54.00. Separately, analysts at Cowen and Company initiated coverage on shares of Lorillard in a research note on Thursday, July 10th. They set an “underperform” rating and a $57.00 price target on the stock. Finally, analysts at Morgan Stanley downgraded shares of Lorillard to an “underweight” rating in a research note on Tuesday, June 24th. Two investment analysts have rated the stock with a sell rating, four have assigned a hold rating and two have given a buy rating to the company’s stock. Lorillard presently has a consensus rating of “Hold” and a consensus price target of $59.14.
Shares of Lorillard (NYSE:LO) opened at 60.39 on Friday. Lorillard has a 52-week low of $41.56 and a 52-week high of $67.46. The stock has a 50-day moving average of $62.05 and a 200-day moving average of $55.79. The company has a market cap of $21.740 billion and a price-to-earnings ratio of 19.99.
Lorillard (NYSE:LO) last posted its quarterly earnings results on Wednesday, July 30th. The company reported $0.84 EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.89 by $0.05. The company had revenue of $1.80 billion for the quarter, compared to the consensus estimate of $1.34 billion. During the same quarter in the prior year, the company posted $0.81 earnings per share. The company’s quarterly revenue was up .7% on a year-over-year basis. Analysts expect that Lorillard will post $3.39 earnings per share for the current fiscal year.
Lorillard, Inc (NYSE:LO) is the manufacturer of cigarettes in the United States.
To view Zacks’ full report, visit Zacks’ official website.
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