J.P. Morgan: Reynolds American's 2011 Results Ahead of Consensus

According to a recent research report published by J.P. Morgan, Reynolds American (NYSE: RAI) has reported pleasing 2011 results.

“The company has set new guidance for the current year suggesting adjusted EPS growth of 4-7% to $2.91-3.01, with prevailing consensus, and our own estimate, at the upper end of that at $2.98. Given that the company has achieved 6% CAGR in EPS since 2005, a period including some difficult trading periods and a dilutive disposal, current year guidance looks conservative we believe. We retain our Overweight recommendation,” J.P. Morgan commented in the report.

J.P. Morgan maintains its $56 PT on Reynolds American, which is currently trading at $39.54.