Analyst Ratings for Reynolds American Inc. (RAI)

Updated: 2017-07-22

Shares of Reynolds American Inc. (NYSE:RAI) have received a consensus rating of Hold from Wall Street analysts. A consensus rating of Hold was previously issued for RAI last month.

A buy rating was issued by 3 analysts, 0 issued an overweight rating, 11 gave a hold rating, 0 issued an underweight rating, and 0 gave a sell rating. Today, there are 0 more analysts optimistic about the company future as compared with 90 days ago. Meanwhile, the number of analysts pessimistic about the company has increased by 0.

Many analysts weighed in on price targets for RAI. The most optimistic price target was 67, implying potential capital gains of 0.16 percent. The most pessimistic price target was 60, which equates to a potential downside of -10.3 percent. One must be careful with overanalyzing price targets and ratings due to possible conflicts of interest among the analysts releasing them.

Analysts have revised their earnings estimates upwards for this quarter, by about 0 percent on average, compared to last month. The average change in earnings estimates over the last 90 days is 0 percent. Over the past 30 days, FY earnings estimates have also changed downwards by -0.2 percent. If we look at the last 90 days instead, we find a net average change of -0.59 percent in FY estimates.

Investors like to see analysts making revisions in the same direction, as that raises confidence in the revisions. 0 analysts have revised their quarterly estimates upwards in the past 30 days, which can be compared to the 3 analysts that decreased their estimates. During this time, 0 analysts made positive revisions in their estimates for this fiscal year's earnings, while 2 analysts made negative revisions to their fiscal year's estimates.

RAI has an estimated earnings growth rate of 10.28 percent as forecasted by analysts. The PEG ratio of a stock is another value frequently studied by investors. A lower PEG ratio is favorable, because that is often interpreted as the company being fairly priced relative to its growth rate. Wall Street investors typically prefer a PEG ratio to be smaller than 1, although it is frequently more appropriate to compare PEG ratios to the company's peers. The PEG ratio of RAI is 2.82.

In the last 52-weeks, RAI has achieved a high of 67.81 and a low of 43.38. Currently the stock is 54.2 percent higher than its low, and below the high by 1.36 percent. RAI has a P/E ratio of 28.96. Investors typically compare the P/E ratio to a company's peers in the industry. The RAI value stock report compares RAI to some of its peers using value stock charts. The market cap of RAI is $94.57 billion. RAI will post this quarters earnings in days, on 0000-00-00.