Reynolds American: Adapting To The Switch Towards A Healthy Lifestyle
- The acquisition of Lorillard will add Newport cigarettes to the company’s branded cigarette portfolio, the market leader in the US menthol category.
- The combination will also provide Reynolds a dominant position in the high growth market of e-cigarettes.
- The company has recently introduced its nicotine gum, marketed under the brand name of Zonnic, throughout US which is expected to add an EPS of $0.15.
- The stock is currently undervalued based on its P/E and offers a striking dividend yield of 4.67%.