Market Update (NYSE:RAI): Advisory: RAI board member Daly resigns

[PR Newswire] – WINSTON-SALEM, N.C., Jan. 15, 2016 /PRNewswire/ — Reynolds American Inc. (NYSE: RAI) has announced the following: “RAI board member Daly resigns; Jerome Abelman designated to succeed him.” … Read more on this. Reynolds American Inc. (RAI) , with a current market cap of $66.44B, opened this morning at $47.03. Looking at the equity, the company’s one day range is $46.40 to $47.59 with a trailing 52-week range being $33.47 to $49.56. Priced at 24.25x this year’s forecasted earnings, RAI shares are relatively expensive compared to the industry’s 23.70x forward p/e ratio. And for dividend hunters, the company pays shareholders $1.44 per share annually in dividends, yielding 3.06%. 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. What we find to be interesting is that the full-year EPS estimate of $1.99 is a $0.28 improvement when compared to the previous 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. More recently, RBC Capital Mkts downgraded RAI from Top Pick to Outperform (Nov 3, 2015). Previously, Credit Agricole downgraded RAI from Outperform to Underperform. Given all the information above, we should disclose to readers that the average price target is $51.13, which is 8.72% above than it opened this morning. See more in (NYSE:RAI) Similar Articles: Market Update: Reynolds American Inc (NYSE:RAI) – Advisory: RAI completes sale of Natural American Spirit international businesses Stock Update (NYSE:RAI): Advisory: Reynolds American Inc. announces expiration of registered Exchange Offers Stock Update (NYSE:RAI): Advisory: Reynolds American Inc. announces executive changes at RAI and R.J. Reynolds Tobacco Company