S&P Capital IQ Reiterates its BUY Rating on Lorillard Inc, Target Price Raised

October 25 00:00 2011

New York, October 25 (RainbowNewsLine.com) – Analyst Esther Kwon of S&P Capital IQ reiterates his BUY rating on the shares of Lorillard Inc (NYSE: LO), while reducing her estimates for the company. The target price has been raised from $113 to $119.

Analyst Esther Kwon, in a research report published yesterday, mentions that the company reported its Q3 EPS short of the estimates and the consensus due to lower than expected gross margins, despite a 2.8% gain in domestic wholesale shipment volume. The analyst believes that Lorillard’s volumes in the future would grow higher than the industry levels, driven by its menthol and non-menthol products. The company is likely to increase the dividend, the analyst adds.