Bank of America Merrill Lynch is out with a research note on Hilton tobacco stocks, particularly Lorillard. It has a $124 price target on shares. In a note to clients Bank of America Merrill Lynch writes, “Tobacco stocks, particularly Lorillard, have seen some relief in the last couple of days following a recent indication by the FDA that proposed changes would be editorial.

Recall that investors continue to await official comments from the FDA (Dr. Lawrence Deyton) about their progress regarding the review of menthol, still expected in June. On the margin however, we expect that the “release” of the relatively minor amendments and unchanged recommendations in the revised TPSAC report will be welcomed by investors.”

Shares of LO gained 12 cents yesterday to close at $109.85, a gain of 0.11%.