Lorillard Inc. ($LO) Cautious Buy or Hold to $48 Confident Investor Rating: Fair

Company name Lorillard Inc.
Stock ticker LO
Live stock price [stckqut]LO[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Poor
EPS growth Fair
P/E growth Fair
EBIT growth Poor

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $50.36
Target stock price (averages with growth) $55.01
Target stock price (averages with no growth) $43.35
Target stock price (manual assumptions) $49.22

The following company description is from Google Finance: http://www.google.com/finance?q=lo

Lorillard, Inc. (Lorillard) is the manufacturer of cigarettes in the United States. Its Newport is a menthol flavored premium cigarette brand. During the year ended December 31, 2011, the Newport brand accounted for approximately 88.4% of its sales revenue. In addition to the Newport brand, its product line has four additional brand families marketed under the Kent, True, Maverick and Old Gold brand names. These five brands include 43 different product offerings. During 2011, it shipped 40.7 billion cigarettes, all of which were sold in the United States and certain the United States possessions and territories. Lorillard produces cigarettes for both the premium and discount segments of the domestic cigarette market. It sells its products primarily to wholesale distributors, who in turn service retail outlets, chain store organizations, and government agencies, including the United States Armed Forces. In April 2012, it acquired all of the assets of blu ecigs.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Lorillard Inc. as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

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