Citi Downgrades Altria, Lorillard, RHS Could Get Burned

Citigroup made calls on U.S. tobacco companies today.

Citi downgraded Altria (MO) from buy to hold, maintaining a $17 price target.

It downgraded Lorillard (LO) from buy to hold, maintaining a $95 price target.

Citi cited increased menthol regulation risk in the downgrades.

Citigroup has buy rating on Reynolds American (RAI), with a price target of $79, and noted the company is less exposed to methanol.

Altria, Lorillard and Reynolds American traded lower today.

Together, the three companies make up 7.62% of the Rydex S&P Equal Weight Consumer Staples ETF (RHS), which was flat on Friday.