Company Update (NYSE:RAI): Advisory: RAI creates subsidiary focused on vapor and nicotine product innovations

[PR Newswire] – WINSTON-SALEM, N.C., Jan. 5, 2016 /PRNewswire/ — Reynolds American Inc. (NYSE: RAI) has announced the following: “RAI creates subsidiary focused on vapor and nicotine product innovations; names … Read more on this. Reynolds American Inc. (RAI) , valued at $66.55B, began trading this morning at $45.13. During the trading session, RAI traded between $45.13 to $46.58 and has traded between $31.68 and $49.56 over the past year. RAI shares are currently priced at 23.19x this year’s forecasted earnings, which makes them relatively inexpensive compared to the industry’s 23.75x earnings multiple for the same period. And for income investors, the company pays shareholders $1.44 per share annually in dividends, yielding 3.12%. In a review of the consensus earnings estimate this quarter, 9 sell-side analysts are looking at $0.50 per share, which would be $0.06 better than the year-ago quarter and a $0.00 sequential decrease. Furthermore, our analysis shows the full-year EPS estimate to be $1.99, which would be a $0.28 better when compared to the last year’s annual results. The quarterly earnings estimate is based on a consensus revenue forecast of the current quarter of $3.03 Billion. If realized, that would be a 42.25% increase over the year-ago quarter. In terms of ratings, RBC Capital Mkts downgraded RAI from Top Pick to Outperform (Nov 3, 2015). Previously, Credit Agricole downgraded RAI from Outperform to Underperform. Investors should keep in mind is that the average price target is $50.88, which is 12.74% above where the stock opened this morning. See more in (NYSE:RAI) Similar Articles: Company Update: Reynolds American Inc (NYSE:RAI) – Advisory: RAI to host 3Q15 earnings conference call Stock Update (NYSE:RAI): Advisory: Reynolds American Inc. announces executive changes at RAI and R.J. Reynolds Tobacco Company Company Update (NYSE:RAI): Advisory: RAI to webcast New York and London presentations